China complains against EU at WTO over EV duties
After Brussels imposed definitive duties ranging from 8 to 35 percent on Chinese electric vehicle imports, Beijing retaliated.
5th November 2024
China announced on Monday that it had filed a complaint against the EU’s final tariffs on electric vehicles made in China at the World Trade Organization. WTO official acknowledged the complaint’s filing.
After the EU decided to impose duties ranging from 8% to 35% on Chinese EV brands, China had said that it will take the issue seriously.
While the European Union, had carried out a year-long investigation which revealed unfair subsidies had benefited Chinese manufacturers, and hence it levied the duties. A negotiating team from the EU is anticipated to travel to China shortly in an attempt to reach an agreement with Beijing whereby manufacturers would commit to minimum prices that would negate the need for duties.
The first step in any WTO dispute settlement, is consultations with the EU, is what China is requesting. These consultations will last for 60 days before a panel may be asked to decide the dispute.
WTO due to shortage of judges, is almost inoperable. However, the backup system, Multi-Party Interim Appeal Arbitration Arrangement (MPIA), of which both China and the EU are members, could resolve their dispute.
