Source: AFP
Beijing announced on Friday that it has filed an appeal with the World Trade Organization against the European Union’s imposition of additional tariffs on electric vehicle imports from China.
In July, the EU imposed additional provisional duties of up to 38 percent on Chinese EVs after its executive arm concluded in an investigation that they were unfairly undermining European competitors.
“On August 9, China appealed to the World Trade Organization’s dispute settlement mechanism regarding the EU’s temporary anti-subsidy measures on electric vehicles,” a spokesman for the country’s commerce ministry said in a statement.
The ministry said the call was aimed at “ensuring the development rights and interests of the electric vehicle industry and cooperation in the global green transformation.”
“The EU preliminary ruling lacks a factual and legal basis, seriously violates WTO rules and undermines the overall state of global cooperation on climate change,” it said.
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“We urge the EU to immediately correct its wrong practices and jointly maintain the stability of China-EU economic and trade cooperation as well as EV industrial and supply chains.”
China and the EU have clashed in recent years on a range of issues related to trade, technology, human rights and national security.
But Brussels faces a delicate balancing act as it tries to defend Europe’s critical auto industry and shift to green growth while avoiding a showdown with Beijing.
The EU has launched a series of probes targeting Chinese subsidies for solar panels, wind turbines and trains, while Beijing has launched its own probes into imported European brandy and pork.
The United States has already raised tariffs on Chinese electric cars to 100 percent, while Canada is considering similar action.
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China’s emergence as a powerhouse has resulted in part from a targeted industrial strategy, with Beijing pouring massive state capital in recent years into domestic companies as well as research and development.
The approach has given Chinese companies a critical advantage in the race to deliver cheaper, more efficient electric vehicles against leading European automakers, which have not always enjoyed such state grandeur.
According to the Atlantic Council, Chinese overseas sales of electric vehicles will increase by 70% in 2023, reaching $34.1 billion.
Almost 40% went to the European Union, the largest recipient of Chinese electric vehicles.
Source: AFP
