China Challenges EU’s Electric Vehicle Tariffs, Files Complaint with WTO

China has strongly opposed the European Union’s recent decision to impose significant tariffs on Chinese electric vehicles, filing a formal complaint with the World Trade Organization (WTO) in response. The Chinese Ministry of Commerce announced this development on Wednesday, stating that the EU’s tariffs, which can reach as high as 35.3%, represent a protectionist measure that undermines fair competition. The tariffs were officially published by the EU on Tuesday and went into effect immediately.

In its statement, the Chinese ministry emphasized that it does not recognize the EU’s decision, labeling the anti-subsidy investigation into Chinese electric vehicles as an instance of “unfair competition” masquerading as fair practices. The ministry affirmed that China will take all necessary actions to safeguard the interests of its companies amid these escalating tensions. The conflict has been brewing since late September when the European Commission proposed imposing import duties on Chinese electric vehicles, prompting warnings from Beijing about the potential for a “trade war.”

The situation is further complicated by recent actions from both sides; on October 11, China implemented temporary anti-dumping measures against EU brandy imports, which could severely impact European producers. In retaliation, the EU Commission has expressed its intent to challenge China’s measures at the WTO, indicating that this trade dispute could escalate further.