China has lodged an official complaint with the World Trade Organisation (WTO) over the EU’s decision to slap major tariffs on new EVs imported from the country.
Officials in Beijing allege that the recent decision by the European Commission has ‘improperly set anti-subsidy tariffs’ on new Chinese-made electric vehicles.
A diplomatic envoy from China told the WTO that it ‘strongly opposes’ the measures, claiming that its complaint is aiming to protect the global EV industry.
Car Dealer reported last month that the European bloc had voted to impose import duties of up to 35% on EVs from China, effective from October 31.
Both sides committed to holding further talks last week but the duties are set to remain in force for five years, unless an amicable deal can be struck.
From the EU’s perspective, it claims that the Chinese exports are unfairly undercutting industry prices, with the tariffs designed to protect European carmakers.
China alleges that the move constitutes ‘an abuse of trade remedies’ that violates WTO rules, with the diplomatic mission labelling them as ‘protectionist’.
Valdis Dombrovskis, the executive vice president of the EU’s Commission, last week called the steps ‘proportionate and targeted’, aimed at underpinning fair market practices to support the bloc’s industrial base.
The WTO has also confirmed that complaint has been lodged and is now being looked into.
An official from the organisation said ‘We can now confirm that a request from China for consultations with the European Union regarding the EU’s definitive countervailing duties on electric vehicles has been received.