Beijing alleged on Friday ( Aug 9 ) that it had filed an appeal with the World Trade Organization regarding the EU’s decision to impose additional tariffs on Chinese imports of electric vehicles.
After its executive branch discovered that Chinese Batteries were badly undermining European rivals, the EU added up to 38 % to the price of these vehicles in July.
” On Aug 9, China appealed to the World Trade Organization’s dispute settlement system over the EU’s momentary anti-subsidy actions on EVs”, a spokeswoman for the government’s business department said in a speech.
The government claimed the appeal was intended to “protect the participation and growth right of the electric vehicle industry.”
The EU’s initial decision lacks a factual and legal foundation, really contravenes WTO regulations, and undermines global cooperation’s ability to address climate change overall, it said.
We urge the EU to correct its improper behavior and work together to maintain China-EU stability in both EV business and supply chains and economic cooperation.
Brussels said it took notice of Beijing’s move but was” comfortable” its probe and temporary measures were WTO-compatible.
A spokesperson for the European Commission told AFP that the EU is “fully studying all the details of this demand” and will respond to Chinese regulators in accordance with WTO rules.
Clear jobs are expected to take impact by November for a five-year time, pending a vote by the EU’s 27 state.
Business Fissures
China and the EU have butted heads in recent years on a range of problems relating to business, systems, individual rights and national security.
Brussels must balance trying to protect Europe’s essential auto sector, shift toward green growth, and avoid a fight with Beijing while doing so.
Beijing has begun its own examinations into imported imported German brandy and pork, while the EU has launched a number of inquiries into Chinese subsidies for solar panels, wind turbines, and carriages.
China has already enacted a comparable measure, while the United States has already increased the duty rate on Chinese electric vehicles to 100 %.
China’s rise as a leader in EV technology is largely due to Beijing’s focused business plan, which has recently invested significant sums of money into home businesses as well as research and development.
Foreign companies have a significant advantage over rival Chinese automakers, who have not always enjoyed such state support.
According to the Atlantic Council, Chinese profits of EVs worldwide rose 70 per share in 2023, reaching US$ 34.1 billion.
The European Union, which received the most Chinese Vehicles, received nearly 40 % of the total.