China files WTO complaint over EU tariffs on electric vehicles

The Chinese government has filed a complaint with the World Trade Organisation (WTO) in response to the European Union’s (EU) imposition of tariffs on electric vehicles (EVs) made in China. The provisional tariffs, ranging from 17.4% to 37.6%, come on top of an existing 10% duty on Chinese auto imports. The EU argues that Chinese EV manufacturers benefit unfairly from government subsidies, enabling them to sell vehicles at artificially low prices, a claim China disputes.

China’s Commerce Ministry stated that it turned to the WTO dispute settlement mechanism “to safeguard the development rights and interests of the electric vehicle industry and cooperation on the global green transformation.” The ministry argued that the EU’s tariffs violate WTO rules and lack a factual and legal basis. China maintains that its support for the EV industry complies with WTO regulations.

The EU and China have until early November to resolve their differences, after which the provisional tariffs will be set for five years. The complaint comes amid rising tensions, with China launching investigations into French cognac exports and European pork in what some analysts fear could escalate into a broader trade war. Germany, heavily reliant on the Chinese market for its automobile industry, has expressed concern about deteriorating relations.

Within the EU, a majority of member states have shown support for the tariffs on Chinese EVs. Last week, EU trade chief Valdis Dombrovskis indicated that he expected states to approve the import fees, underscoring the bloc’s stance on the issue.