China Files WTO Complaint as Feud Over EU EV Tariffs Escalates

China has lodged a complaint with the World Trade Organization (WTO), over European Union tariffs as high as 45% on Chinese electric vehicles.

The EU finalized its tariffs on October 29, over claims that the Chinese government has been unfairly subsidizing its EV industry, allowing the country to undercut the global market with low-priced vehicles. The levies range between 8% and 35% depending on the manufacturer — on top of an existing 10% tariff — and are set to remain in place for the next five years. 

According to the Associated Press, China filed its complaint against the tariffs with the WTO on November 4, labeling the levies "an abuse of trade remedy measures." 

"China believes the EU's final ruling on anti-subsidy measures lacks factual and legal foundation, [and] violates the WTO rules," a spokesperson with China's trade ministry said in a news release. The EU has also defended its tariffs, with EU Commission executive vice president Valdis Dombrovskis calling them "proportionate and targeted." 

In the meantime, China is continuing to negotiate with the EU, in hopes of coming to a compromise on the levies moving forward. The day after the tariffs were announced, Bloomberg reported that the EU had sent officials to Beijing to look into an alternative agreement, although months of previous talks have failed to produce results.