China has formally lodged a complaint with the World Trade Organization (WTO) against the European Union (EU) over its recent tariff hikes on electric vehicles (EVs) imported from China. Chinese officials filed the complaint on Monday, arguing that the EU’s decision constitutes “trade protectionism” and infringes on global trade rules. The move, announced by China’s Commerce Ministry, aims to “safeguard the development interests” of the EV sector.
The Commerce Ministry criticized the EU’s tariff increases, asserting that they lack a factual and legal basis. A spokesperson urged the EU to reconsider its measures, calling for efforts to maintain the stability of the EV supply chain and uphold China-EU economic ties. “China believes the EU’s final ruling on anti-subsidy measures lacks factual and legal foundation, violates WTO rules, and is an abuse of trade remedy measures,” the ministry stated.
The EU’s tariff structure, effective November 1, imposes additional levies on Chinese EV manufacturers. SAIC faces the highest rate at 35.3 percent, while Geely and BYD are subject to 18.8 percent and 17 percent tariffs, respectively. Most cooperating companies are subject to a 20.7-percent duty, while Tesla received a reduced rate of 7.8 percent. These charges are in addition to the standard 10-percent tariff on all imported vehicles.
The EU and China exchanged €739 billion (~$806 billion) in goods in 2023, making China the EU’s second-largest trading partner. EU Trade Chief Maros Sefcovic confirmed plans to send EU officials to Beijing for further discussions, emphasizing the need for a balanced trade relationship. “We are not interested in trade wars,” Sefcovic said, reflecting the EU’s interest in finding a resolution.
This dispute follows months of stalled negotiations, with China advocating for a minimum import price on EVs to replace the new tariffs. However, talks have faced challenges, as the EU recalls prior agreements in the solar industry that ultimately led to China dominating the EU solar market.
Source: Bloomberg
