Brussels (The Brussels Morning Newspaper) – The European Commission is confident its inquiry into Chinese EV subsidies complies with WTO rules. The EU has imposed provisional tariffs on Chinese EVs, which China disputes.
How does the EU ensure compliance with WTO regulations?
The European Commission voiced confidence that its ongoing inquiry into state subsidies provided to China’s electric vehicle industry and the subsequent actions taken to address these subsidies are in full adherence with World Trade Organization (WTO) regulations. The EU Commission announced that its probe into the problem will persist, underlining its dedication to ensuring that trade practices align with international rules.
What are the details of the EU’s provisional tariffs?
In July, the European Union raised temporary tariffs of up to 37.6 per cent on imports of Chinese electric vehicles. This move was sought to protect European-made models after an investigation showed that China had been subsidizing its electric vehicle industry, forming an uneven playing field. The tariffs were developed to defend the competitiveness of European manufacturers against subsidized challengers from China.
The move was also a significant blow for Beijing, which is already in a trade battle with Washington. The EU is the biggest overseas market for China’s EV industry and the nation is counting on high-tech products to help revive its flagging economy. EU officials said this rise in imports was inspired by “unfair subsidisation”, which permitted China-made EVs to be sold at much more down prices than ones produced in the bloc.
China has rejected this repeated allegation from the US and the EU: Beijing is investing excess production to flood Western markets with inexpensive imports. The new charges come into effect but are currently provisional while the examination into Chinese state support for the country’s EV makers continues. They are not likely to be charged until later this year.
How has China responded to the EU’s tariff increase?
In response, China requested talks with the WTO, challenging the EU’s findings and the imposition of provisional tariffs. China claims that the EU’s investigation lacks factual and lawful foundation and that the tariffs violate WTO regulations. The European Commission is currently studying China’s request and will respond following WTO policies, ensuring that all actions and decisions are transparent and explained within the framework of international trade l
