China "knocks on the door" of the WTO for the second time, suing the EU over electric cars, tensions have spread to other products

On November 4, China's Ministry of Commerce filed a lawsuit with the World Trade Organization (WTO) to protest the European Union's (EU) anti-subsidy measures against electric vehicles produced in the country.

China's Ministry of Commerce has also objected to the EC's investigation into anti-subsidy measures on its electric vehicles. (Source: Reuters)

This is the second time China has decided to sue the EU over its electric vehicle tax law.

Previously, on October 30, the Chinese Ministry of Commerce also objected to the results of the European Commission's (EC) investigation into anti-subsidy measures against China's electric vehicles.

The world's second largest economy said the investigation contained many unreasonable points, was inconsistent with regulations, and was an act of protectionism under the name of "fair competition".

The 27-member bloc's imposition of tariffs on electric vehicles made in China, with a tax rate of up to 45.3% lasting for five years, officially took effect from October 31, in which the specific tax rate depends on each car manufacturer.

BYD is taxed at 17%, Geely at 18.8%, while Chinese state-owned SAIC is charged the highest rate of 35.3%. When added to the EU's standard 10% import duty, these rates rise to 27%, 28.8% and 45.3% respectively.

Other companies that manufacture cars in China, such as Volkswagen and BMW, pay a tax rate of 20.7%, while Tesla pays 7.8%.

Last week, Chinese automaker SAIC also filed a lawsuit against the EU's investigation results at the European Court of Justice to "protect its legitimate rights and interests."

According to SAIC, the investigation was invalid as it “ignored” important information and arguments from the company.

Trade tensions between China and the EU are now escalating, even spreading to other product lines such as spirits, dairy products and chemicals.

Source: https://baoquocte.vn/trung-quoc-go-cua-wto-lan-thu-hai-kien-eu-ve-xe-dien-cang-thang-da-lan-sang-cac-san-pham-khac-292607.html