China files WTO complaint against EU over tariffs on electric vehicles

BEIJING (AP) — The Chinese government said Friday it has filed a complaint with the World Trade Organization over European Union tariffs on electric vehicles made in China.

The Commerce Ministry said that China had resorted to the WTO dispute settlement mechanism “to safeguard the development rights and interests of the electric vehicle industry and cooperation on the global green transformation.”

The EU has imposed provisional tariffs of up to 37.6% on EVs made in China, saying they unfairly benefit from government subsidies. China says its support for the EV industry conforms with WTO rules.

The two sides have until early November to try to resolve their differences, after which the provisional tariffs become official.

China’s auto exports rose in July compared with the same month last year, while domestic sales fell, an industry association reported Friday.

China’s Commerce Ministry said that the EU tariffs violate WTO rules and undermine global cooperation on climate change.

In response, China has launched investigations into French cognac exports and European pork in what some analysts fear could develop into an economically harmful trade war with the EU.