The EU claims that Chinese electric car makers received government subsidies that unfairly undermined their European rivals. China says it has resorted to the WTO to preserve “the global green transformation.”
The Chinese government filed an appeal with the World Trade Organization (WTO) on Friday over tariffs on electric cars made in China.
It comes after the European Union applied extra duties on EVs made in China and accused Chinese automakers of flooding the market.
“The EU’s preliminary ruling lacks a factual and legal basis, seriously violates WTO rules, and undermines the overall situation of global cooperation in addressing climate change,” a spokesperson for China’s Commerce Industry said.
“We urge the EU to immediately correct its wrong practices and jointly maintain the stability of China-EU economic and trade cooperation as well as EV industrial and supply chains.”
The European Commission said it would respond to the appeal through WTO mechanisms.
“The EU is carefully studying all the details of this request and will react to the Chinese authorities in due course according to the WTO procedures,” a spokesperson told the French AFP news agency.
The move came after the EU concluded that Chinese automakers received large government subsidies that unfairly undermined their European rivals.
EU officials have accused Chinese automakers of “flooding” the European market with cheaper electric cars.
However, China’s Commerce Ministry said it turned to the WTO dispute settlement mechanism “to safeguard the development rights and interests of the electric vehicle industry and cooperation over the global green transformation.”
Brussels has in recent months tried to avoid a showdown with Beijing after it launched a raft of probes into Chinese government subsidies for green technologies like solar panels, wind turbines and trains.
China has meanwhile opened an investigation into imported European brandy and pork.
