China lodges complaint with WTO over EU’s tariff hikes on EVs imports
Date
10/30/2024 8:38:46 AM
(MENAFN) China has formally lodged a complaint with the World Trade Organization (WTO) in response to the European Union's recent increase in tariffs on electric car imports, as announced by the Chinese Commerce Ministry on Wednesday. The EU Commission revealed that its investigation into subsidies for electric cars produced in China has concluded, resulting in a five-year imposition of additional customs duties on imports from the country. This move signifies a significant shift in trade dynamics, particularly concerning the burgeoning electric vehicle (EV) market.
Under the new regulations, the additional tariffs vary significantly depending on the manufacturer. For instance, Tesla's models produced in China will face an extra tax of 7.8 percent, while Chinese automakers like BYD and Geely will encounter tariffs of 17 percent and 18.8 percent, respectively. Manufacturers involved in the EU's investigation will see a tax rate of 20.7 percent, while state-owned enterprises that did not cooperate, such as SAIC Motor, will face the highest tariff of 35.3 percent. These tariffs reflect the EU's efforts to level the playing field for domestic manufacturers amid growing concerns about competition from Chinese EVs.
The Chinese Commerce Ministry has criticized the EU's investigation, labeling it as "unreasonable" and non-compliant with international trade standards. They argue that the measures constitute a protectionist approach disguised as a pursuit of "fair competition," asserting that such practices hinder genuine market dynamics and free trade principles. As a result, China has declared its refusal to acknowledge the outcomes of the EU's ruling.
In filing the complaint with the WTO, China aims to challenge the legality of the EU's actions and seeks to defend its interests in the global electric vehicle market. The dispute highlights the increasing tensions between China and the EU over trade practices, particularly in the rapidly evolving automotive sector, which is at the forefront of the global transition to electric mobility. This situation underscores the complexities of international trade relationships and the significant role that tariffs and regulations play in shaping market access and competition.
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