China may file a lawsuit against the WTO due to potential EU retaliatory taxes.
China is warning that it might sue the EU at the World Trade Organization (WTO) over possible tariffs on their electric vehicles. "China has the right to file a complaint with the World Trade Organization and will take all necessary measures to firmly defend the rights and interests of Chinese businesses," expressed He Yadong, a Chinese Ministry of Commerce spokesperson.
These tariffs wouldn't just disrupt "win-win cooperation" in the realm of new energy vehicles for both parties, but also skew the global automotive industry and the entire supply chain. The EU Commission's approach is speculated to go against WTO rules and is seen as a "blatant act of trade protectionism."
On Wednesday, the EU Commission tentatively announced tariffs up to 38.1% on Chinese electric cars. However, whether China would actually have to pay these tariffs relies on whether a resolution can be reached with the EU. If no solution materializes, the aforementioned tariffs will be enforced from early July, with the EU aiming to establish long-term levies. China is urged to show readiness for negotiations.
Read also:
- In response to the EU's proposed punitive tariffs on Chinese electric vehicles, China is considering a lawsuit at the World Trade Organization (WTO), arguing that these measures violate their rights and could adversely impact the global automotive industry.
- If the WTO rules in favor of China, the EU may need to reconsider its defense of the tariffs, as this could potentially lead to the withdrawal of EU punitive tariffs against Chinese electric vehicles.
- The WTO has a crucial role to play in this situation, as any decision made by them could have significant implications for trade relations between China and the EU, as well as the broader automotive industry.
