Written by Cláudio Afonso | LinkedIn | X
China has formally initiated a dispute settlement process with the World Trade Organization (WTO) in response to the European Union’s anti-subsidy tariffs targeting Chinese-made battery electric vehicles (EVs), the Ministry of Commerce announced on Friday.
The European Union decision was prompted by the conclusion that Chinese EV manufacturers receive substantial state subsidies, which allow them to sell vehicles at significantly lower prices in Europe.
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This practice was deemed by the EU as creating unfair competition, threatening the viability of European car manufacturers.
The tariffs vary depending on the manufacturer, with companies like BYD facing a 17.4% tariff and others like SAIC Group being hit with the maximum rate of 37.6%.
According to the Ministry’s spokesperson, China will urge the rectification of the tariffs considering them an “erroneous decision”.
“We urge the EU to rectify its erroneous actions promptly, in order to jointly uphold the stability of China-EU economic and trade cooperation and the industrial and supply chain integrity within the EV sector,” the spokesperson told China’s media outlet ChinaDaily.
The tariffs are now being applied since July 5 and will remain effective until a final decision is made in November. If confirmed, the tariffs will be definite for five years.
In early July, China accelerated the talks with the EU to address the EU’s decision to impose significant tariffs on Chinese-made battery electric vehicles.
Germany’s auto association VDA has recently urged the European Commission to reconsider its planned tariffs.
In a statement, the association argued that the tariffs would adversely affect both European and U.S. carmakers exporting from China.
VDA warned of potential retaliatory measures by China, which could significantly impact the German automotive industry due to its substantial export volume to China.
Written by Cláudio Afonso | LinkedIn | X
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The post China Takes EU Tariffs on Electric Vehicles to WTO for Dispute Resolution first appeared on EV.