China has launched a dispute settlement procedure at the World Trade Organization (WTO) regarding the European Union's tariffs on Chinese electric vehicles, the WTO announced on Wednesday.

The Chinese Commerce Ministry reported last week that Beijing had appealed to the WTO's dispute settlement mechanism over the EU's tariffs on Chinese electric vehicles.

"China has requested WTO dispute consultations with the European Union regarding the EU's anti-subsidy investigation on imported battery electric vehicles from China and the subsequent imposition of provisional countervailing duties on the targeted vehicles. The request was circulated to WTO members on 14 August," the WTO said in a statement.

China Challenges EU Tariffs

In early July, the EU had imposed provisional tariffs of up to 37.6% on these vehicles, arguing that Chinese automakers benefit from substantial government subsidies, which give them an unfair advantage in the European market.

China however disputes this characterization, asserting that its support for the EV industry is in line with WTO rules.

The Chinese government says it views the EU's actions as a violation of international trade norms and a hindrance to global cooperation on climate change.

Read more: China appeals added EU tariffs on Chinese electric vehicles at WTO

Beijing's complaint to the WTO is part of a broader effort to safeguard the interests of its EV sector, which has been unfairly targeted by EU tarrifs.

The dispute also reflects the broader geopolitical and economic competition between China and the EU, particularly in the high-tech and green energy sectors.

China's lead in the global EV market has led to increased scrutiny and pushback from other major economies, including the EU and the US which have also taken measures to protect their domestic industries from Chinese competition.