China filed an appeal with the World Trade Organization (WTO) over the European Union (EU) imposing tariffs on Chinese-made electric vehicle (EV) imports.
“On August 9, China appealed to the World Trade Organization’s dispute settlement mechanism over the EU’s temporary anti-subsidy measures on EVs,” said a spokesperson from China’s Commerce Ministry.
China’s Commerce Ministry claims that the appeal to the WTO is the country’s attempt to “safeguard the development rights and interests of the electric vehicle industry and cooperation over the global green transformation.”
On July 5, 2024, the European Commission started implementing provisional tariffs of up to 38% on China-made EV imports. The Commission’s new EV import tariffs would be placed on top of the EU’s current 10% duty rate. EU member states are expected to support the permanent implementation of the new EV import tariffs by the end of the year.
Similar tariffs have been imposed on China-made EV imports in the United States. US President Joseph Biden announced tariffs on several Chinese products, including 100% duties on Chinese electric vehicles. Canada is considering tariffs on China-made EV imports at rates similar to those in the United States.
The European Commission’s EV import rates for China are significantly lower than those imposed in the United States or the rates Canada is thinking of implementing.
“The EU’s preliminary ruling lacks a factual and legal basis, seriously violates WTO rules, and undermines the overall situation of global cooperation in addressing climate change.
“We urge the EU to immediately correct its wrong practices and jointly maintain the stability of China-EU economic and trade cooperation as well as EV industrial and supply chains,” commented China’s Commerce Ministry
The Commission conducted an anti-subsidy probe before announcing its new tariffs for China-made EV imports. While the investigation is ongoing, the Commission provisionally concluded that China’s EV value chain benefited from unfair subsidization “causing a threat of economic injury to EU BEV producers.”
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