- Beijing to WTO over EU tariffs on electric cars
The dispute over the EU's provisional duties on Chinese electric vehicles is heating up. According to a statement from the Ministry of Commerce in Beijing, China is appealing to the dispute settlement body of the World Trade Organization (WTO) in this matter. The ministry cited the protection of the rights and interests of the domestic EV industry as the reason.
The EU's provisional decision lacks factual and legal basis, violates WTO rules, and undermines global cooperation and efforts to tackle climate change, a spokesperson said in the statement. Beijing is calling on the EU to immediately correct its wrongdoing and work together to ensure economic and trade cooperation, as well as supply chain stability in the EV industry.
Long Process
Cases before the WTO dispute settlement panel often drag on for years. Theoretically, parties can appeal judgments, but the mechanism has not functioned for years due to the U.S.'s obstruction of the appointment of new experts. The U.S. aims to build pressure for larger reforms within the WTO.
Since early July, security deposits have been required for Chinese electric vehicles. Whether the duties will actually be levied will be decided by the EU Commission in the coming months in consultation with EU member states. Brussels concluded after a lengthy investigation that EVs in China were unfairly subsidized and posed a threat to the industry in the EU. The tariffs on different manufacturers range up to 37.6 percent.
The appeal by China against the EU's provisional duties on electric cars at the WTO discourse could potentially extend for years, given the protracted nature of cases before the dispute settlement panel. China strongly advocates for the EU to reconsider its decision, arguing that electric cars are essential for global cooperation in tackling climate change.
