China has filed a complaint with the World Trade Organization over the European Union’s decision to impose high tariffs on Chinese-made electric cars. The EU announced tariffs of up to 35% after finding that Chinese state subsidies were undercutting European automakers. Germany and Hungary have opposed the move, fearing a trade war with Beijing.
China criticized Brussels’ decision, stating that it does not agree with the tariffs and has filed a complaint with the WTO. The Chinese commerce ministry said that China will take all necessary measures to protect the rights of Chinese companies.
The EU defended its decision, with trade chief Valdis Dombrovskis stating that the measures were necessary to uphold fair market practices. The additional tariffs will last for five years and apply to vehicles made in China by foreign groups as well.
The European automotive industry, which employs around 14 million people, prompted the EU to launch the probe. France welcomed the decision to impose tariffs, while bigger carmakers like Volkswagen criticized the move and called for resolving the issue through dialogue.
Talks between the EU and China are ongoing, with the possibility of lifting the tariffs if a satisfactory agreement is reached. The Chinese Chamber of Commerce to the EU called for accelerating talks to eliminate the tariffs. China has also threatened retaliatory measures against the EU.
Trade tensions between China and the EU extend beyond electric cars, with investigations into subsidies for other products like solar panels and wind turbines. Canada and the United States have also imposed high tariffs on Chinese electric car imports.
Overall, the dispute between China and the EU over electric car tariffs continues to escalate, raising concerns about a potential trade war.