China Considers WTO Action Against EU Tariffs on Electric Vehicles

Islamabad: China is threatening to bring the European Union before the World Trade Organization (WTO) due to proposed high import tariffs on Chinese electric vehicles.

Accusing the EU of engaging in "naked protectionist behavior," China's commerce ministry spokesman, He Yadong, emphasized Beijing's readiness to file a WTO suit and take necessary actions to protect Chinese companies' interests.

The European Commission announced plans to impose provisional duties, potentially reaching 38.1%, on Chinese electric vehicle imports following an investigation into alleged illegal subsidies from China. However, Brussels indicated openness to resolving the issue before implementing these interim tariffs in July.

Chinese officials dispute the basis of the tariffs, calling them devoid of factual and legal justification. They warn that such actions could violate WTO rules.

Effective July 4 on a provisional basis, these tariffs could become permanent by November if a long-term resolution isn't reached through dialogue. China has urged the EU to reconsider its approach, emphasizing the importance of resolving economic and trade disputes through consultation.

German officials, including Economy Minister Robert Habeck, caution against triggering a tariff escalation and stress the need for direct talks with China to find a mutually agreeable solution. This issue underscores European ambitions to swiftly transition to electric vehicles while maintaining competitiveness in manufacturing amid a global automotive industry shift.