Beijing Appeals EU Tariffs on Chinese Electric Vehicles to WTO

Beijing has officially filed an appeal with the World Trade Organization (WTO) in response to the European Union's provisional tariffs of up to 38% on electric vehicles (EVs) imported from China, which took effect on July 5. The Chinese Commerce Ministry argues that the EU's decision lacks a factual and legal basis, claiming it violates WTO rules and disrupts global cooperation on climate change. The ministry emphasized the need to protect the development rights of the electric vehicle industry and called for immediate correction of what it deems "wrong practices" by the EU. The EU's tariff decision followed an investigation by the European Commission, which concluded that Chinese state subsidies to domestic car manufacturers were unfairly undermining European competitors. In response, China threatened to take legal action at the WTO, asserting that the EU's investigations infringed upon the legal rights of affected companies. The European Commission, however, has defended its actions, stating that the investigations were conducted in accordance with international and EU legal standards. As tensions rise, the EU faces a challenging balancing act: protecting its automotive industry while fostering green growth and avoiding a confrontation with Beijing. The EU has also initiated probes into Chinese subsidies for other sectors, including solar panels and wind turbines, while China has begun its own investigations into European imports like brandy and pork. China's rapid emergence as a leader in the EV market is attributed to significant state investment in domestic firms and research, giving them a competitive edge over European automakers. In 2023, Chinese EV exports surged by 70%, with nearly 40% of sales directed to the EU, highlighting the growing interdependence between the two economies.