8:36 am, August 12, 2024
The ongoing row over EU tariffs on electric vehicles made in China has taken a fresh twist after the Chinese government filed a complaint with the World Trade Organisation (WTO).
Car Dealer reported earlier this year that the European Union is set to introduce tariffs of up to 37.6% on EVs made in China, amid claims that manufacturers are ‘unfairly benefiting from government subsidies’.
The motion has proved incredibly controversial, with Germany abstaining from a recent vote on the matter.
Now, the saga has taken another turn after the Chinese commerce ministry confirmed its complaint with the WTO.
The government body said it has referred the case to the WTO dispute settlement mechanism in order to ‘safeguard the development rights and interests of the electric vehicle industry and cooperation on the global green transformation’.
China insists that its support for the country’s EV industry conforms with WTO rules and is vowing to fight any tariffs.
The two sides have until early November to try to resolve their differences, after which the provisional tariffs become official.
Should that happen, the move would impact heavily on Tesla, which has car building facilities in China, as well as several home grown brands like BYD, Xpeng and Omoda.
The government in Beijing currently charges a 15% tariffs on the import of European EVs heading the other way.
The likes of Germany, Hungary and Sweden have all spoken out against the tariffs but EU bosses say the measure is needed in order to combat subsidies handed out by the Chinese government to its carmakers.
In order for the new rule to be overturned, the trio of rebels would need convince 11 other governments to stand with them.
Czech Republic and Slovakia – both of which have major car production plants – are expected to oppose the plans.
A vote on the tariffs will take place before November 2.
