China Files WTO Complaint Over EU’s Tariff Hike on Chinese EVs

A Chery Luxeed R7 electric car is displayed at a showroom in Beijing on Oct. 10, 2024. Adek Berry/AFP via Getty Images

The Chinese regime said on Nov. 4 that it had lodged a formal complaint at the World Trade Organization (WTO) about the European Union’s decision to impose definitive duties on electric vehicles (EVs) made in China, escalating trade tensions between Beijing and the 27-nation bloc.

Brussels began to collect extra tariffs on EVs shipped from China on Oct. 30. These definitive duties—which will remain in place for the next five years—are the result of a year-long investigation conducted by the European Commission, which found that Chinese EVs were receiving substantial state subsidies that were threatening to cause economic injury to the EU’s automakers.

In an online statement, a spokesperson for China’s Ministry of Commerce reiterated Beijing’s opposition to the EU’s move, saying that its complaint lodged with the WTO’s dispute settlement mechanism is intended to “safeguard the development interests of the EV industry and global green transformation cooperation.”

The ministry said the EU’s final ruling lacked a “factual and legal basis” and violated the WTO rules. It called the decision “an abuse of trade remedy measures” and a form of “trade protectionism in the name of countervailing.”

In response, the European Commission expressed confidence that its investigation into state subsidies for Chinese EVs and the measures being implemented fully adhere to WTO guidelines.

“The Commission has now, after more than a year’s careful work, concluded its detailed and fact-based anti-subsidy investigation,” a spokesperson for the EU’s executive arm told The Epoch Times in an emailed statement. “We have done so in full respect of all relevant EU and WTO rules.”

The spokesperson added that the commission “takes note” of the Chinese regime’s request for WTO consultations and will “study all the details and react to the Chinese authorities in due course, according to WTO procedures.”

Beijing announced the complaint ahead of a potential visit by European officials to China aimed at addressing the ongoing trade dispute.

On Nov. 1, the Chinese commerce ministry confirmed that a delegation from the EU will travel to China to continue discussions on the details of price commitment plans. If both parties can reach an agreement, these plans could serve as an alternative to the current levies.

While Brussels has not issued a formal statement regarding the trip, officials have previously confirmed the commitment to continue dialogue with China’s regime despite the tariffs in place. So far, eight rounds of consultations have failed to yield significant progress.

The EU launched a probe into imports of Chinese EVs last October, and unveiled its proposals to impose provisional duties in July. At the time, the EU said that extra levies were intended to “remove the substantial unfair competitive advantage” enjoyed by the Chinese EV supply chains due to Beijing’s “unfair subsidy schemes.”

The Chinese Communist Party (CCP) rejected these criticisms and, in August, its commerce ministry launched a dispute with the WTO over the EU’s provisional measures. Beijing also opened its own anti-subsidy review of the EU’s pork and dairy imports, and is now exploring the possibility of hiking the levies on imports of large-engine vehicles.

In October, the CCP introduced provisional measures against European brandy imports—a decision widely seen as a jab at France, a main backer of slapping additional duties on Chinese EVs.

During a meeting with Chinese Commerce Minister Wang Wentao on Nov. 3, French junior trade minister Sophie Primas expressed the EU’s intention to avoid escalating tensions.

The EU remains committed to continuing its trade with China “but will not yield to pressure on the essential points,” Primas said during the meeting with Wang in Shanghai, according to her press office.

“We will continue to defend fairer competition that benefits everyone.”