BEIJING: China announced on Thursday, June 13, that it “reserves the right” to sue the World Trade Organization (WTO) in response to impending new tariffs on imports of its electric vehicles from the European Union.
Following an investigation into anti-subsidy practices, the EU threatened to impose additional tariffs of up to 38% on Chinese imports of electric cars starting next month.
Provisional tariff increases on Chinese manufacturers have been proposed by the European Commission: 17.4% for market leader BYD, 20% for Geely, and 38.1% for SAIC. According to the EU, the amount was determined by the firms’ receipt of state subsidies.
Beijing’s commerce ministry spokesman, He Yadong, told a briefing that “China reserves the right to file a suit to the WTO and take all necessary measures to defend the rights and interests of Chinese companies resolutely.
On Wednesday, the European Commission called attention to “unfair subsidization” in China, stating that it “is causing a threat of economic injury” to European Union manufacturers of electric vehicles.
If 15 nations, or at least 65% of the EU’s total population, vote against the move, the tariffs will go into effect temporarily starting on July 4 and then permanently starting in November. Even though the EU tariffs are high, they are not as high as the 100% rate the US placed on Chinese electric vehicles last month.
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