China files WTO complaint against EU over tariffs on electric vehicles

BEIJING – The Chinese government said on Friday it had filed a complaint with the World Trade Organization over European Union tariffs on electric vehicles made in China.

The Ministry of Commerce said China had resorted to the WTO dispute settlement mechanism “to safeguard the development rights and interests of the electric vehicle industry and cooperation in global green transformation.”

The EU has imposed temporary tariffs of up to 37.6% on electric vehicles made in China, saying they unfairly benefit from government subsidies. China says its support for the electric vehicle industry is in line with WTO rules.

Both sides have until early November to try to resolve their differences, after which the temporary tariffs will become official.

China’s car exports rose in July compared with the same month last year, while domestic sales fell, an industry association said on Friday.

China’s Commerce Ministry said the EU tariffs violate WTO rules and undermine global cooperation on tackling climate change.

In response, China has launched investigations into exports of French cognac and European pork, which some analysts say could escalate into an economically damaging trade war with the EU.