China has filed a lawsuit against the European Union at the World Trade Organization (WTO) over the high tariffs the EU has imposed on Chinese-made electric vehicles (EVs). write Euronews.
Brussels claims that production receives excessive subsidies and electric cars are sold at artificially low prices on world markets.
The duties, which range from 7,8% to 35,3% depending on the brand, are in addition to the existing 10% levy and will be levied from October 30.
Trade measures designed by the European Commission to offset Beijing's financial aid and prevent EU companies from being squeezed out of the lucrative EV sector will be in place for five years.
"China has repeatedly emphasized that there are many unfounded and inappropriate aspects in the EU's anti-subsidy investigation into Chinese electric vehicles. This is a protectionist practice of "unfair competition" in the name of "fair competition". - said the statement of the Ministry of Commerce of China.
"China does not agree and does not accept this decision and filed a lawsuit under the WTO dispute settlement mechanism. China will continue to take all necessary measures to resolutely protect the legitimate rights and interests of Chinese companies."
Previously, China had already threatened retaliatory measures against European products: dairy, brandy industry and pork production. Brussels called these actions "unfounded".
China's commerce ministry has stressed its willingness to continue talks with the European Commission to reach a solution "as soon as possible" that could lift the tariffs, a path strongly favored by Germany.
The focus of the negotiations is the possibility of setting minimum prices for Chinese electric cars.
While EU officials are open to a deal, they warn that minimum prices for a product as complex and diverse as electric cars could prove unfeasible for customs officials. The Commission has already rejected the previous proposal.
The Chinese Chamber of Commerce in the EU, which is involved in the process, condemned the tariffs as "arbitrary", "unreasonable" and "politically motivated" and warned that they could have a "complex impact" on ongoing discussions on minimum prices.
"We are also disappointed by the lack of significant progress in the negotiations before the decision deadline," - declared in the chamber.
The European Commission has not yet received the lawsuit from the WTO, its representative said, and information about it has not yet been published on the WTO website.
The EU executive has consistently defended its investigation as fact-based, thorough and compliant with WTO rules. Its findings, published in June, served as the legal basis for introducing tariffs on imports.
The European Commission says that thanks to Beijing's financial aid, Chinese electric car makers have increased their sales in Europe extremely quickly, with their market share rising from 1,9% in 2020 to 14,1% in the second quarter of 2024, according to internal estimates.
"There is a clear and imminent threat that our automotive industry will not be able to transition to electric vehicles and will be destroyed," - said a high-ranking EU official on Tuesday, warning of the closing of factories and the dismissal of thousands of workers.
The EU and its second-largest trading partner will continue discussions aimed at finding alternative solutions even after the tariffs come into force, but the talks have so far failed to produce a breakthrough.
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