TMTPOST -- China responds the European Union’s latest tariffs on Chinese electric vehicles (EVs) with a compliant at the World Trade Organization (WTO).
Credit：Xinhua News Agency
In order to safeguard the development of the EV industry and global green transformation cooperation,China has filed a complaint with the WTO over the EU’s final ruling on anti-subsidy measures on Monday, a spokesperson with China’s Ministry of Commerce (MOFCOM) told reporters, according to website of the ministry.
The latest move suggested Beijing has moved forward its complaint as the spokesperson noted it had already appealed to WTO over the EU’s preliminary anti-subsidy measures with tariffs on EV imports from China. The spokesperson expressed China’s “strong opposition” to the bloc’s final ruling. It is regretable to see the EU decided to impose hefty duties on Chinese EVs despite numerous objections by relevant parties ranging from governments of EU member states, industries and the public, the spokesperson said.
The spokesperson alleged the EU’s final anti-subsidy ruling lacks factual and legal basis and violates WTO rules. China deems the ruling an an abuse of trade remedies as well as trade protectionism in the name of anti-subsidy, according to the spokesperson. China urges the the EU to reflect on its wrongdoings, immediately rectify its non-compliant practices, and jointly safeguard the stability of the global EV industry chain and supply chain, as well as overall China-EU economic and trade cooperation, said the spokesperson.
China’s appeal came after the EU began to levy up to 45% definitive tariffs on Chinese EVs after its anti-subsidy probe for more than a year.
The European Commission said on July 4 it imposed provisional countervailing duties of up to 37.6%, on top of the ordinary BEV import duty of 10%, on imports of BEVs from China. The regulatory body disclosed on October 4 its proposal to impose definitive countervailing duties on imports of BEVs from China has obtained the necessary support from EU Member States for the adoption of tariffs. The announcement cleared hurdles for the EU to introduce up to 45% definitive tariffs. Since a qualified majority of 15 EU members completed, the proposed definitive tariffs are set to go into effect from next month for five years.
The European Commission proposed to add up to 35.3% to the current 10% duty faced by Chinese exporters. Its latest proposal was formally approved and published in the EU's Official Journal on last Tuesday, meaning they took effect on last Wednesday.
Based on the Commission's proposal,Tesla appears to be the big winner as the EU will impose an extra 7.8% tariff on Tesla EVs originated from China, much lower than the 20.8% under the provisional duties that took effect in July.
The Commission has slightly lowered tariff rates that three sampled Chinese EV makers. The additional individual duties on BYD, Geely and SAIC would be 17%, 18.8% and 35.3%, respectively. Other cooperating companies would be subject to a 20.7% tariff, while non-cooperating companies would be slapped with a 35.3% rate. All of these additional tariffs are on top of the EU’s standard 10% import duty of cars.
In the meantime, the EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the Commission's investigation, monitorable and enforceable, said the European Commission.
The EU's wrong decision will hurt the interests of European consumers and impede the region's green transition plan, while undermining the legitimate rights and interests of Chinese EV enterprises and potentially dampening their enthusiasm to invest in Europe, according to a commentary by China’s state news agency Xinhua last Wednesday. It pointed out that the situation has not yet evolved into a dead end, as the Chinese and European sides have both agreed to continue their consultations, but it calls for greater sincerity and political courage on the EU part to seek a reasonable solution and correct any mistakes.
