China files WTO lawsuit in response to new tariffs by EU
Date
11/6/2024 7:19:22 AM
(MENAFN) China has filed a complaint with the World Trade Organization (WTO) in response to new tariffs imposed by the European Union (EU) on electric vehicles (EVs) imported from China. The EU's decision to levy tariffs ranging from 8% to 35% on Chinese-made EVs for the next five years follows a year-long investigation, which concluded that Chinese manufacturers benefit from unfair subsidies. These new tariffs will be in addition to the standard 10% import duty on vehicles.
The Chinese Ministry of Commerce expressed strong opposition to the EU's ruling, calling it detrimental to both the development of the EV industry and global green transformation efforts. The ministry announced it would take legal action at the WTO, arguing that the tariffs are unjustified and violate international trade rules. It also criticized the EU's move as a form of trade protectionism, especially given the widespread opposition to the tariffs from various EU member states and industries.
The EU has defended its decision, stating that the tariffs are necessary to protect European automakers from unfair competition. Brussels claims that Chinese EV manufacturers benefit from substantial government subsidies, giving them an unfair advantage in the market. Despite this, some EU countries, including Germany and Hungary, have voiced opposition to the new measures.
Chinese EVs have become increasingly popular in Europe, with the value of imports rising significantly from $1.6 billion in 2020 to $11.5 billion in 2023, now accounting for 37% of all EV imports to the EU.
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