In a significant escalation of trade tensions, China has formally challenged the European Union’s recent preliminary ruling on imported electric vehicles (EVs) through the World Trade Organization (WTO). The Chinese Commerce Ministry stated on Friday that the EU’s findings lack both factual and legal basis, asserting that they seriously violate WTO rules.
The dispute centres around the EU’s plan to impose temporary countervailing measures on Chinese-made EVs. These measures, which could lead to provisional duties, have been met with strong opposition from Beijing. In response, China has taken the decisive step of resorting to the WTO’s dispute settlement mechanisms, signalling its intent to contest the EU’s actions on the international stage.
A spokesperson for the Chinese Commerce Ministry emphasised the gravity of the situation in a statement, underlining China’s position that the EU’s preliminary ruling is fundamentally flawed. The ministry’s stance reflects growing concerns in Beijing about potential barriers to its burgeoning EV industry’s access to the lucrative European market.
The move to engage the WTO’s dispute resolution process represents a significant escalation in China’s response to the EU’s trade measures. It indicates that China is prepared to defend its interests through formal international channels, potentially setting the stage for a protracted legal battle over trade practices in the rapidly evolving EV sector.
Chinese state media had previously reported that the ministry reserved the right to file lawsuits with the WTO concerning the EU’s plans. This latest action confirms China’s willingness to follow through on those warnings, demonstrating the seriousness with which it views the EU’s proposed tariffs.