China has filed a complaint with the World Trade Organization (WTO) regarding the European Union's tariffs on Chinese-made electric vehicles.
China's Ministry of Commerce said on Friday, August 9, that China resorted to the WTO's dispute settlement mechanism to “protect the development rights and interests of the electric vehicle industry and cooperate in global environmental transformation.”
The EU has raised import duty rates on Chinese electric cars to 37.6 percent since July this year, saying that their manufacturers receive substantial subsidies from the Chinese government. Brussels believes the practice poses a “threat of economic harm” to European automakers. China says its support for electric cars is in line with WTO rules.
Both sides have until early November to try to resolve their differences, after which the interim tariffs become official. China's auto exports rose in July compared with the same month last year, while domestic sales fell, an industry association said on Friday.
Earlier, in response to the actions of the EU, China launched an investigation into the export of French cognac and European pork, which, according to some analysts, could turn into a trade war with the European Union.