China appeals added EU tariffs on Chinese electric vehicles at WTO
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The Chinese Commerce Ministry affirms that the appeal comes to protect the development rights and interests of the electric vehicle industry.
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Attendees look at the electric Han EV sedan from Chinese automaker BYD during the Auto Shanghai 2023 show in Shanghai on April 19, 2023. (AP)
China filed an appeal on Friday at the World Trade Organization (WTO) over the addition of tariffs imposed by the European Union on Chinese electric vehicles.
On August 5, the Financial Times reported that EU nations are expected to back the proposed tariffs that would be imposed on Chinese electric vehicles in November, citing European Trade Commissioner Valdis Dombrovskis.
This came after European Commission spokesperson Eric Mamer stated in July that the commission intended to apply import taxes on Chinese electric vehicles.
Speaking to FT, Dombrovskis said, "It's clear that member states realize the need to protect the EU’s car industry because this risk of injury is there. Chinese battery electric vehicle market share is growing very rapidly. That subsidization is there," stressing the need for the matter "to be addressed."
It is anticipated that member states will vote on the tariff proposal in late October, with the decision going into effect in November.
The Chinese Commerce Ministry said on August 9 that the country "appealed to the World Trade Organization's dispute settlement mechanism over the EU's temporary anti-subsidy measures on EVs," aiming to protect the development rights and interests of the electric vehicle industry and promote cooperation in the global green transition.
The Ministry further slammed the EU's decision, saying it lacked "a factual and legal basis, seriously violates WTO rules, and undermines the overall situation of global cooperation in addressing climate change."
China then called on the EU to backtrack on its decision, safeguard China-EU economic and trade relations, and sustain EV industrial and supply chains.
Fear of retaliation
Last month, the European Union added extra provisional duties of up to 38% on Chinese electric car imports because of supposed "unfair" state subsidies, despite Beijing's warnings that such a move would unleash a trade war.
A European Commission probe launched last year concluded that Chinese state subsidies for EV manufacturers were unfairly undercutting European companies.
"Our investigation... concluded that the battery electric vehicles produced in China benefit from unfair subsidization, which is causing a threat of economic injury to the EU's own electric car makers," Dombrovskis said at the time.
China emerged as the clear global leader in the EV market in 2022, surpassing the combined sales of all other countries. Chinese sales were six times higher than those of second-place US. The country also accounts for 58% of all EV cars sold. The publicly listed Chinese multinational conglomerate BYD accounts for 29.6% of all EV sales in 2022.
The Chinese Chamber of Commerce to the EU slammed the latest tariffs, which on to current import duties of 10%, saying that the move is politically motivated and protectionist.
