China warns of WTO lawsuit amid EU's electric car import restrictions
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This comes after the European Commission's provisional decision on Wednesday to impose additional tariffs on imports of Chinese electric vehicles starting from July.
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Visitors look at a Geely Galaxy E8 car during the Auto China 2024 in Beijing, Sunday, April 28, 2024. (AP)
China's Commerce Ministry spokesman He Yadong stated on Thursday that China maintains the option to initiate legal action through the World Trade Organization (WTO) if the EU imposes import restrictions on Chinese electric cars.
This comes after the European Commission's provisional decision on Wednesday to impose additional tariffs on imports of Chinese electric vehicles starting from July, citing alleged unfair subsidization, unless fruitful discussions with China lead to a satisfactory resolution.
"China reserves the right to file a lawsuit with the WTO and will adopt all the necessary measures to resolutely defend the legal rights and interests of the Chinese companies," He told a briefing, while further calling on the bloc to immediately lift its decision.
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On May 6, EU Commission President Ursula Von Der Leyen said that the EU is adamant about resorting to tough measures "to protect its economy and security" amid strained trade ties with China.
"China that plays fair is good for all of us," she said in her statement, adding, "Europe will not waver from making tough decisions needed to protect its economy and its security...We will defend our companies, we will defend our economies."
Von der Leyen claimed there were "imbalances that remain significant" and "a matter of great concern," as she spoke of Chinese subsidies for electric cars and steel that were "flooding the European market".
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The Chinese Commerce Ministry said on Wednesday that the EU's actions are not only infringing upon the legal rights and interests of Chinese electric car manufacturers but are also disrupting and distorting the global automotive supply chain, including that within the EU.
The ministry cautioned that such measures by the EU would not only impact the economic and trade cooperation atmosphere between Beijing and Brussels but also harm the interests of European consumers.
"It goes against the principles of market economy and international trade rules, undermines China-EU economic and trade cooperation, as well as the stability of the global automobile production and supply chain," Chinese Foreign Ministry spokesperson Lin Jian said.
The sources stated that tariffs are expected to be "up to 25 percent" in addition to the existing 10 percent duty.
"We urge the EU side to honor its commitment of supporting free trade and opposing protectionism and work with China to uphold the overall interests of China-EU economic and trade cooperation," Lin stated, adding, "China will take all necessary measures to firmly safeguard its legitimate rights and interests".
In 2023, Beijing stood as Brussels' foremost partner in terms of EU imports. The primary imported goods from China included telecommunications equipment, electrical machinery, and automatic data processing machines.
