China sues EU over electric cars - Beijing turns to WTO after tariffs of up to 35% on Chinese brands
China announced it had launched a lawsuit at the World Trade Organization (WTO) against the EU's final tariffs on Chinese electric vehicles.
Beijing had threatened to do so last week after the European Union finalized a decision to impose tariffs of 8 to 35 percent on Chinese brands. This decision came after a year-long investigation found that Chinese manufacturers had benefited from unfair subsidies.
China's Ministry of Commerce said that "in order to protect the development interests of the electric vehicle industry and global green transformation cooperation, Beijing has decided to file a lawsuit against the EU's final measures."
A World Trade Organization official confirmed that the complaint had been filed.
"We can confirm that a request has been received from China for consultations with the European Union regarding the EU's final countervailing duties on electric vehicles," the official said.
Meanwhile, the EU is expected to immediately send a negotiating team to China in an attempt to find a compromise with Beijing.
China's request for EU consultations is the first step in any WTO dispute settlement, which will last for 60 days before a panel is called to adjudicate the case. However, the WTO's highest appeals body is out of order due to a shortage of judges caused by the United States' tensions with the organization.
However, China and the EU can resolve their conflict through the back-up system, known as the MPIA (Interim Appellate Arbitration), of which both parties are members.
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