China brought a complaint against the European Union’s interim tariff on Chinese electric vehicles to the WTO. The EU has imposed higher tariffs from between 17.4% and 37.6% that have now added to its previous 10% import tax over Chinese cars. This action resulted after the EU discovered that subsidies granted by the Chinese government gave their local automakers an edge over those in Europe.
Trade tensions have been escalating due to global tariff wars around protectionist policies on electric vehicles, with China also being accused by the US and EU of providing an unfair backing for its electric vehicle market. The tariffs infringe upon WTO regulations and undermine worldwide efforts aimed at combating climate change pandemic, according to China’s Ministry of Commerce.
China filed a complaint on Friday claiming that unreasonable and detrimental measures taken by the EU regarding climate are not friendly for international cooperation. As per European authorities’ statement, this happened in July when they introduced provisional import duties because they had evidence demonstrating that such subsidies given to Chinese battery electric vehicle (BEV) manufacturers posed economic risks to producers operating within EU boundaries.
In light of this, China is asking the EU to stop doing what it is doing so as to make sure both sides protect China-EU Economic Relations and keep stability of electric vehicles supply chain together with us.