China will appeal to the World Trade Organisation (WTO) following the European Union’s decision to impose extra tariffs on Chinese electric vehicle imports in July, according to a statement by the Chinese Ministry of Commerce on Friday.
The EU declared up to 38% of temporary additional duties on these imports, citing Beijing’s illegal advantage to its manufacturers. Until now, Chinese-made vehicles experienced a tax rate of 10% within the EU.
"China has initiated the dispute settlement mechanism of the World Trade Organisation," said the Chinese Ministry of Commerce in Friday’s statement, urging the EU to "immediately correct its bad practices." Beijing accuses Brussels of violating WTO rules and undermining worldwide efforts to combat climate change.
The European Commission has four months to decide on the final tariffs, allowing for an open window of negotiation. If approved by all 27 members, these duties would last five years.
Countries such as France and Spain have strongly advocated for proportional measures, whereas Germany, significantly invested in China, alongside Sweden and Hungary, have strived to avoid sanctions due to feared retaliation from Beijing.
The EU claims to uphold WTO rules with these tariffs – aimed at curbing imports of Chinese electric vehicles without completely blocking them.
Through these tariffs, Brussels hopes to protect an industry which employs 14.6 million EU workers while avoiding a fatal conflict with its second largest economic partner.
