China Appeals to WTO to Overturn Excessive EU Tariff Ruling

The Chinese Ministry of Commerce yesterday announced that China has formally appealed to the World Trade Organization (WTO) against the European Union’s (EU) decision to enforce countervailing measures on electric vehicles (EV) manufactured in China.

This latest appeal follows China’s earlier challenge to the EU’s preliminary anti-subsidy measures targeting Chinese EVs.

China firmly opposes the EU's final ruling, which imposes significant countervailing tariffs on Chinese EVs despite strong objections from a broad range of stakeholders, including EU member states, various industries, and the public.

The EU has increased tariffs on EV that are made in China by as much as 45.3%. The tariff, which is based on brands, ranges from 7.8% to 35.3%, in addition to the EU's standard 10% car import duty.

The ministry spokesperson, in an online statement, emphasised that China’s appeal to the WTO dispute settlement mechanism aims to safeguard the EV sector’s interests and foster international collaboration in green technology transformation.

According to the ministry's spokesperson, the EU's decision is neither factually nor legally justified and is in breach of WTO rules where excessive use of trade remedies and protectionism under the guise of countervailing duties and tariffs.

China has therefore called on the EU to correct these actions swiftly and ensure compliance with international trade norms and supporting stability within the global EV industry, supply chains, and the broader framework of economic and trade cooperation between China and the EU.