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China attacks EU with WTO lawsuit over tariffs on electric vehicles
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China attacks EU with WTO lawsuit over tariffs on electric vehicles

France’s trade minister recently urged French officials to encourage the EU to negotiate a fair solution.

4 hours ago

    China attacks EU with WTO lawsuit over tariffs on electric vehicles

  • Chinese and European officials tried to negotiate on tariffs, but no solution was found.
  • SAIC faces the highest tariff increase among Chinese brands, with a sharp increase of 35.3%.
  • China is encouraging automakers to suspend investments in EU countries that have approved the tariffs.

In a quick response to European Customs duties newly imposed by the Union on products manufactured in China electric vehiclesThe People’s Republic escalated the conflict by filing a formal complaint with the World Trade Organization (WTO), urging Brussels to reconsider its decision. Beijing’s latest move, thinly veiled in diplomatic language, indicates it is not about to stand idly by as the EU increases pressure on Chinese electric vehicles competing in the European market.

The lawsuit accuses the EU of lacking a “factual and legal basis” for the tariff hikes, saying they violate WTO rules and constitute “an abuse of trade remedies.” China’s Ministry of Commerce adds that it filed the lawsuit “to safeguard the development interests of the electric vehicle industry and global cooperation in green transformation.”

Read: China asks electric vehicle makers to stop investing in EU countries that approved tariffs

China requested consultations with the EU, opening a 60-day window to reach an agreement before the WTO can intervene with a dispute settlement panel.

In a press release published in Bloomberga ministry spokesperson said China urges “the EU to face up to its mistakes and immediately correct its illegal practices, and jointly maintain the stability of the global electric vehicle supply chain and economic cooperation and China-EU tradeā€.

In the months since the tariffs were officially announced, Chinese and European officials have held talks to try to negotiate a solution that works for both. However, no agreement could be reached before the tariffs were introduced at the end of October. SAIC was hit with the biggest tariff increase of all, 35.3%, while Geely was hit with an 18.8% tariff hike, and BYD now has to pay an additional 17%. These increases are in addition to the existing rate of 10%.

    China attacks EU with WTO lawsuit over tariffs on electric vehicles


Marcos Sefcovic, the EU’s new trade chief, is said to be on the ground in China this week, suggesting Brussels has not completely given up hope of reaching a deal.

Meanwhile, Chinese Commerce Minister Wang Wentao recently met with French officials and urged them to push the EU towards a resolution, Reuters reports.

Last week, it was revealed that China’s Ministry of Commerce had asked local automakers to suspend investment plans in countries that voted in favor of tariffs, while encouraging investment only in countries that voted against. These include Germany, one of five members opposed to the new tariffs.

    China attacks EU with WTO lawsuit over tariffs on electric vehicles