Beijing files complaint at WTO over EU tariffs on Chinese electric vehicles

China has moved forward with a complaint at the World Trade Organisation that alleges the European Union has improperly set anti-subsidy tariffs on new Chinese-made electric vehicles.

The Chinese diplomatic mission to the WTO said on Monday it “strongly opposes” the measures and insisted its move was designed to protect the EV industry and support a global transition toward greener technologies.

The European bloc announced last month it was imposing import duties of up to 35% on electric vehicles from China, alleging the Chinese exports were unfairly undercutting EU industry prices.

The duties are set to remain in force for five years, unless an amicable deal can be struck.

Electric vehicles have become a major flashpoint in a broader trade dispute over the influence of Chinese government subsidies on European markets and Beijing’s burgeoning exports of green technology to the bloc.

China alleged that the EU move amounted to “an abuse of trade remedies” that violates WTO rules, and amounted to “protectionist” measures, according to the mission’s statement.

Valdis Dombrovskis, the executive vice president of the EU’s Commission, last week called the steps “proportionate and targeted” and were aimed to underpin fair market practices and support the bloc’s industrial base.