China has reacted to a trade dispute instigated by the European Union (EU) by filing a complaint with the World Trade Organization (WTO) over the EU’s new tariffs on Chinese electric vehicle (EV) imports.
China’s Ministry of Commerce claims these tariffs represent “trade protectionism” and violate WTO rules, while the EU argues they are a response to unfair subsidies allegedly benefiting Chinese EV manufacturers.
These tariffs, which reach up to 45%, have been in effect provisionally since July. Although negotiations are ongoing, with EU officials in Beijing exploring a potential agreement on price undertakings to avoid tariffs, major differences remain.
This dispute could escalate into a trade war, disrupting global supply chains and impacting the €739 billion bilateral trade between China and the EU.