China has escalated its trade tensions with the European Union by filing a complaint with the World Trade Organization (WTO) over the EU’s decision to impose anti-subsidy duties on Chinese electric vehicles (EVs). This move marks a significant escalation in the ongoing disputes that are already straining China’s relations with both the EU and the United States.
On Friday, China formally submitted its case to the WTO’s dispute resolution mechanism, according to a statement from the country’s Ministry of Commerce. The filing aims to safeguard China’s rights and interests in the rapidly growing electric vehicle sector.
The relationship between Beijing and the EU has deteriorated to a new low in recent months, as the EU aligns its policies more closely with those of the U.S. Last month, the EU implemented provisional tariffs on some Chinese-made cars, potentially raising duties up to 48% following a lengthy investigation into state subsidies for Chinese EV manufacturers.
Beijing swiftly condemned the EU’s actions, warning of potential retaliatory measures against European farmers and aircraft manufacturers. Additionally, China has initiated an anti-dumping investigation targeting the French wine industry.
The electric vehicle industry has become a focal point in the broader geopolitical and trade conflicts, as the global transition away from internal combustion engines accelerates. China’s dominance in this sector is partly due to substantial government investments, recognizing the strategic importance of EVs for both environmental and economic reasons.
The United States has also moved to curb the import of Chinese-made EVs, imposing tariffs exceeding 100%. U.S. officials argue that China is flooding global markets with low-cost products, particularly in emerging green industries. Canada is currently considering similar measures as the global trade landscape shifts in response to China’s growing influence in the EV market.