China lodges WTO complaint against European Union regarding tariffs on electric cars

The Chinese government lodged a complaint on Friday with the World Trade Organization regarding European Union tariffs imposed on electric vehicles produced in China. The Commerce Ministry stated that China had taken the matter to the WTO dispute settlement mechanism to protect the developmental rights and interests of the electric vehicle industry, as well as to promote global cooperation in sustainable initiatives.
Following the EU’s enforcement of provisional tariffs reaching up to 37.6% on electric vehicles manufactured in China, citing unfair advantages stemming from government subsidies, China asserts that its support for the electric vehicle sector aligns with WTO regulations.
Both parties have until early November to resolve their disputes; otherwise, the provisional tariffs will become permanent. In July, China observed a surge in its automobile exports while experiencing a decline in domestic sales, according to an industry association report.
China’s Commerce Ministry criticized the EU tariffs, stating that these measures violate WTO protocols and disrupt international efforts on climate change. In retaliation, China initiated investigations into French cognac exports and European pork, raising concerns among analysts about the potential escalation of a detrimental trade conflict with the EU.