China appeals to WTO over EU tariffs on electric vehicles

China said Friday that it had filed an appeal with the World Trade Organization regarding hefty European Union tariffs placed on the import of Chinese electric vehicles.
The EU in July imposed tariffs of up to 37.6% on vehicles made in China after it found that the automakers had received large government subsidies that undermined European competitors. China, however, said Friday that any support it provides to its domestic EV market is given in accordance with WTO rules.
In a statement, China’s Commerce Ministry said that it had appealed the tariffs “to safeguard the development rights and interests of the electric vehicle industry and cooperation over the global green transformation.”
“The EU’s preliminary ruling lacks a 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 maintain the stability of China-EU economic and trade cooperation as well as EV industrial and supply chains.”
The European Commission said it would respond to China’s complaint through the proper channels.
“The EU is carefully studying all the details of this request and will react to the Chinese authorities in due course according to the WTO procedures,” a European Commission spokesperson told AFP.
WTO spokesperson Ismaila Dieng said in a statement that the organization had received the Chinese request, and that “further information will be made available once the request has been circulated to WTO members.”
Duties would take effect by November for five years, pending a vote by the EU member states.
‘Made in China 2025’
China’s dominance in the EV market stems from its 2015 industrial policy dubbed “Made in China 2025” that sought to make the nation a dominant force in global high-tech manufacturing, including the manufacture of EVs.
Chinese EV sales accounted for 8.1 million of the 13.7 million total cars sold worldwide in 2023, according to a report from the International Energy Agency. According to the Atlantic Council, the EU is the largest recipient of Chinese EV exports, accounting for nearly 40% in 2023.
In the years since the beginning of the COVID-19 pandemic, the EU had committed to the development of its green economy, highlighting the promotion of a European EV industry as a cornerstone in that effort.
In May, French automakers entered a government agreement that aims to drive EV sales up to 800,000 a year by 2027. This announcement preceded Chinese President Xi Jinping’s visit to Europe the same month, during which he made stops in France, Serbia and Hungary with the aim of increasing his country’s ties on the continent.
Trade was a large focus of Xi’s meetings in France with President Emmanuel Macron and European Commission President Ursula Von der Leyen. With tensions unresolved, the EU subsequently issued the tariff increase two months after Xi’s departure.
The United States has taken similar moves to combat the strength of China’s EV industry, announcing in May that it would apply a 100% tariff on Chinese EVs. Canada may follow suit.
China has responded to Europe’s increased tariffs by launching its own investigations into French cognac exports and European pork, stoking fears of a future trade war with the EU.
Some information for this report came from The Associated Press, Reuters and Agence France-Presse.