China said Friday (9/8) that it had filed an appeal with the World Trade Organization (World Trade Organization/WTO) regarding the high tariffs imposed by the European Union on imports of electric vehicles from China.
The European Union in July imposed tariffs of up to 37.6 percent on Chinese-made vehicles after finding that the automaker received large government subsidies that undercut European competitors. But China said Friday that any support it gives to its domestic electric vehicle market is in line with WTO rules.
In a statement, China's Commerce Ministry said it had appealed the tariffs “to safeguard the development rights and interests of the electric vehicle industry and cooperation in global green transformation.”
“The EU’s initial decision lacks factual and legal basis, seriously violates WTO rules and undermines the overall situation of global cooperation in addressing climate change,” the statement said.
“We urge the EU to immediately correct its wrong practices and jointly safeguard the stability of China-EU economic and trade cooperation and the electric vehicle industry and supply chain.”
The European Commission said it would respond to China's complaints through appropriate channels.
“The EU is carefully studying all the details of this request and will react to the Chinese authorities in due course in accordance with WTO procedures,” a European Commission spokesperson told the news agency AFP.
WTO spokesman Ismaila Dieng said in a statement that the organization had received China's request, and that “further information will be available once the request is circulated to WTO members.”
The obligation will come into force in November for a period of five years, pending a vote by EU member states.
Made in China 2025
China’s dominance in the electric vehicle market stems from a 2015 industrial policy dubbed “Made in China 2025.” The policy seeks to make China a dominant force in global high-tech manufacturing, including electric vehicle manufacturing.
According to a report from the International Energy Agency (International Energy Agency/IEA), China's electric vehicle sales accounted for 8.1 million of the 13.7 million total cars sold worldwide in 2023. According to the Atlantic Council, the EU is the largest importer of Chinese electric vehicles, accounting for nearly 40 percent of China's electric vehicle export sales in 2023.
The United States has taken similar steps to counter China’s electric vehicle industry prowess, announcing in May that it would impose 100 percent tariffs on Chinese electric vehicles. Canada is likely to follow suit.
China has responded to Europe's tariff hikes by launching its own probes into French cognac and European pork exports, raising fears of a future trade war with the EU. (ft)
Some information for this report came from The Associated Press, Reuters and Agence France-Presse.
