China Sues EU at WTO Over Electric Vehicle Anti-Subsidy Measures:Can it Impact Sanctions?
Beijing, November 4, 2024 – China has filed a complaint with the World Trade Organization (WTO) against the European Union’s (EU) final anti-subsidy measurestargeting Chinese electric vehicles (EVs), according to a statement released by China’s Ministry of Commerce (MOFCOM).
The move comes after the EUimposed hefty anti-subsidy duties on Chinese EVs in September, despite widespread opposition from EU member states, industry players, and the public. MOFCOM argues that the EU’s decision lacks factual and legal basis, violates WTO rules,and constitutes an abuse of trade remedy measures, effectively disguised trade protectionism.
The EU’s anti-subsidy final determination is a blatant violation of WTO rules and a clear case of trade protectionism, stated MOFCOM. This decision not only harms the development of the Chinese EV industry but also undermines global green transformation cooperation.
China’s decision to take the EU to the WTO highlights the escalating trade tensions between the two economic giants. The dispute centers around the EU’s claim that Chinese EV manufacturers receive unfair subsidies from the Chinese government,giving them an advantage in the European market.
China’s EV exports to the EU have been a significant growth area in recent years. However, data from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products reveals that China’s EV exports to the EU declined by 7.6%year-on-year to 297,500 units in the first eight months of 2024.
The EU’s anti-subsidy measures are likely to further dampen Chinese EV exports to the EU, potentially impacting Chinese EV manufacturers’ global market share.
The WTOdispute is expected to be a lengthy process, with both sides likely to present their arguments and evidence. It remains unclear whether China’s legal challenge will be successful in overturning the EU’s anti-subsidy measures.
However, the dispute highlights the growing trade friction between China and the EU, particularly in thestrategically important EV sector. The outcome of this case could have significant implications for the future of global trade and the development of the EV industry.
References:
- China Ministry of Commerce (MOFCOM) press release, November 4, 2024.
- China Chamber of Commerce for Import and Exportof Machinery and Electronic Products, 2024 data.
- Caixin Global, China Sues EU at WTO Over Electric Vehicle Anti-Subsidy Measures, November 4, 2024.
Note: This article is based on the provided information and aims to present a neutral and factualaccount of the situation. It does not express personal opinions or endorse any particular viewpoint.
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