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China Challenges EU Electric Vehicle Tariffs At WTO

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Last month, the European bloc declared that it would impose import tariffs as high as 35% on Chinese electric vehicles, claiming that these exports were being sold at prices that unfairly undermined those of the EU industry. These tariffs are scheduled to last for five years unless a mutual agreement is reached.

China has escalated a trade dispute by lodging a formal complaint with the World Trade Organisation, accusing the European Union of imposing unjust anti-subsidy tariffs on newly produced Chinese electric vehicles. According to statements made by the Chinese diplomatic mission to the WTO on Monday, China “strongly opposes” these measures, asserting that its actions are intended to safeguard its electric vehicle sector and promote the worldwide shift toward more sustainable technologies.

The EU, last month, declared that it would apply import duties as high as 35% on Chinese electric vehicles, claiming that these imports were being sold at prices that unfairly undermined European manufacturers. These tariffs are scheduled to remain in effect for a duration of five years, pending the possibility of a mutually agreeable resolution.

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This conflict over electric vehicles is part of a larger contention concerning the impact of Chinese government subsidies on European markets and the increasing penetration of Chinese green technologies into the EU.

The Chinese have criticised the EU’s actions as a misuse of trade remedies that contradicts WTO regulations, branding them as “protectionist.” In contrast, Valdis Dombrovskis, the Executive Vice President of the EU Commission, defended the EU’s decision last week, describing the measures as “proportionate and targeted.” He emphasised that these steps are necessary to maintain fair market conditions and to bolster the European industrial sector.

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Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

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