EU-China Tit-For-Tat Tariffs Aren't Really A Trade War


(MENAFN- Asia Times) Sino-European commercial relations are going through a rough patch. Beijing is suing the European Union (EU) at the World Trade Organization (WTO) over Brussels' decision to impose heavy tariffs on battery electric vehicles (BEVs) imported from China.

But while China-EU tensions are clearly on the rise, scrutiny of the dispute reveals that the two sides are heading toward a more selective commercial engagement rather than a full-blown trade war.

On November 4, the Chinese Ministry of Commerce confirmed that it filed a lawsuit against the EU over its late October decision to increase tariff rates on BEVs imported from China. Including the baseline 10% import tax on all cars brought into the EU, the new tax rates on Chinese BEVs range between 18-45%. The EU's decision comes after an anti-subsidy investigation launched in October last year.

Apart from confronting the EU in front of the WTO, China has adopted a host of countermeasures against what it sees as“unfair trade protectionism .” Earlier this year, Beijing started its own anti-subsidy inquiries against EU pork and dairy products.

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Asia Times

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