China seeks WTO talks over EU tariffs on Chinese EVs that ‘severely violate’ trade rules

Trade frictions between China and the European Union escalated on Friday as Beijing announced its decision to take the bloc’s import tariffs on Chinese electric vehicles to the World Trade Organization (WTO) for arbitration.

“The EU’s preliminary ruling lacks factual and legal basis, seriously violates WTO rules, and undermines the overall situation of global cooperation in addressing climate change,” the spokesman said.

“We urge the EU to immediately correct the wrongdoings and join hands to safeguard bilateral economic and trade cooperation, as well as the stability of EV industrial chains.”

The move by China came after the EU’s additional duties of up to a revised 37.6 per cent on Chinese-battery electric vehicles took effect on July 5 and would initially last for a maximum of four months.

Previously, both sides said the matter was still being negotiated, with a final verdict expected in four months.

And starting from July 10, China began a trade-and-investment-barrier investigation, looking at how the EU’s Foreign Subsidy Regulation had affected Chinese companies.

More to follow …