China has filed an appeal with the World Trade Organization (WTO) regarding the European Union’s imposition of tariffs on Chinese electric vehicles. The EU imposed tariffs of up to 37.6% on vehicles made in China in July, citing government subsidies that were deemed to undermine European competitors. However, China argues that its support for the domestic electric vehicle market is in accordance with WTO rules.
In a statement released by China’s Commerce Ministry, they stated that the appeal was made to protect the development rights and interests of the electric vehicle industry and to promote global cooperation in the green transformation. They criticized the EU’s ruling, stating that it lacked a factual and legal basis, violated WTO rules, and disrupted global efforts to address climate change. China urged the EU to correct its practices and maintain stability in economic and trade cooperation between China and the EU.
The European Commission responded by stating that they would address China’s complaint through the appropriate WTO procedures. The WTO confirmed that they had received China’s request and would provide further information once it had been circulated to WTO members. The tariffs were set to take effect by November for a period of five years, pending a vote by EU member states.
China’s dominance in the electric vehicle market can be attributed to its „Made in China 2025“ industrial policy, which aimed to establish the country as a leader in high-tech manufacturing, including electric vehicles. Chinese electric vehicle sales accounted for a significant portion of global sales, with the EU being the largest recipient of Chinese electric vehicle exports.
In recent years, the EU has focused on developing its green economy, with an emphasis on promoting the European electric vehicle industry. This commitment was evident in agreements made by French automakers to increase electric vehicle sales. However, tensions between China and the EU escalated following Chinese President Xi Jinping’s visit to Europe, leading to the imposition of tariffs on Chinese electric vehicles by the EU.
The United States has also taken steps to address the strength of China’s electric vehicle industry by imposing tariffs on Chinese electric vehicles. Canada is considering similar measures. In response to the EU’s tariffs, China has initiated investigations into French cognac exports and European pork, raising concerns about a potential trade war between China and the EU.
Overall, the dispute over tariffs on Chinese electric vehicles highlights the complexities of global trade relations and the competition in the electric vehicle market. The outcome of China’s appeal to the WTO and the response from the EU will have significant implications for the future of trade between the two economic powerhouses.