No country produces as many electric cars as China. However, the EU wants to prevent cheap vehicles from flooding the European market – much to Beijing’s displeasure.
The dispute over the EU’s provisional tariffs on electric cars from China is entering the next round. As the Ministry of Commerce in Beijing announced, China is turning to the dispute settlement body of the World Trade Organization (WTO) on the matter. The ministry cites the protection of the rights and interests of the domestic electric car industry as the reason.
The EU’s preliminary decision lacks a factual and legal basis. It violates WTO rules and undermines global cooperation and the handling of climate change. Beijing is calling on the EU to immediately correct its misconduct and to jointly ensure economic and trade cooperation as well as the stability of the supply chain in the electric car industry, a spokesman said in a statement.
Not yet sure whether China really has to pay EU tariffs
Cases before the WTO Dispute Settlement Committee often drag on for years. In theory, those involved can appeal against rulings, but the mechanism has not worked for years because the USA has prevented the appointment of new experts. They want to use this to build pressure for major reforms in the WTO.
Electric car, hybrid, gas or petrol
What type of car am I?
Since the beginning of July, security deposits have been required for electric cars from China. The EU Commission wants to clarify with the EU states in the coming months whether the tariffs will actually be due. After a months-long investigation, Brussels came to the conclusion that electric cars are unfairly subsidized in China and that imports from the country endanger industry in the EU. The surcharges imposed on various manufacturers range up to 37.6 percent.
Source: Stern
