- China sues EU tariffs on electric cars
Dispute over EU's provisional tariffs on Chinese electric cars escalates. The Ministry of Commerce in Beijing announced that China has referred the matter to the dispute settlement body of the World Trade Organization (WTO). The ministry cited the protection of domestic electric vehicle industry's rights and interests as the reason.
The EU's provisional decision lacks factual and legal basis, violates WTO rules, and undermines global cooperation and climate change mitigation efforts, a spokesperson said in the statement. China urges the EU to immediately rectify its wrongdoing and work together to ensure economic and trade cooperation, as well as supply chain stability in the electric vehicle industry.
Uncertainty remains over whether China will have to pay EU tariffs
Cases before the WTO dispute settlement panel often drag on for years. Parties can theoretically appeal judgments, but the mechanism hasn't functioned for years due to U.S. obstruction of new expert appointments, aiming to pressure for larger WTO reforms.
Since early July, security deposits have been required for Chinese electric vehicles. The EU Commission will clarify with EU member states in the coming months whether these tariffs will indeed apply. After a lengthy investigation, Brussels concluded that electric vehicles in China are unfairly subsidized, posing a threat to the EU industry. The tariffs range up to 37.6 percent for different manufacturers.
The EU Commission is responsible for clarifying with EU member states whether the imposed tariffs on Chinese electric vehicles will be upheld. The Commission's decision follows an investigation that revealed unfair subsidies in the Chinese electric vehicle industry, posing a threat to EU industries.
In light of the ongoing dispute, The Commission plays a vital role in representing EU's interests and ensuring that global trade rules are adhered to in the electric vehicle sector.
