China Denounces European Tariffs on Electric Vehicles at the WTO

China has filed a complaint with the WTO against the EU's tariffs on Chinese electric vehicles, stating that they violate WTO rules and hinder global cooperation on climate change. In response, China has launched investigations into unfair competition regarding European pork and brandy products.

While the WTO process involves negotiations and a binding ruling, it lacks the power to impose sanctions. The EU justifies the tariffs by citing Chinese state subsidies to domestic carmakers that unfairly undermine European rivals.

The US has already increased customs duties on Chinese EVs, and Canada is considering similar action. China's emergence as an EV powerhouse is attributed to its targeted industrial strategy, giving Chinese firms a competitive edge in cheaper and more efficient EVs.

Chinese EV sales abroad have seen a significant increase, with nearly 40% going to the EU, the largest recipient of Chinese EVs. The dispute resolution process with the WTO is expected to be lengthy.

The Chinese government hopes for a negotiated solution with the EU and the German auto industry, as the preliminary ruling is set to be finalized by early November.