China on Monday said it has initiated a dispute at the World Trade Organization against the EU's final duties on electric vehicles made in China, UNN reports citing Politico.
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Beijing threatened to do so last week after the EU finally decided to impose duties ranging from 8 to 35 percent on Chinese electric vehicle brands. The duties were imposed after a year-long investigation revealed that Chinese manufacturers were benefiting from unfair subsidies.
China's Ministry of Commerce stated that "in order to protect the interests of the development of the electric vehicle industry and global cooperation in the field of green transformation, China has decided to file a lawsuit against the EU's final anti-subsidy measures".
A WTO official confirmed that the complaint had been filed.
"We can now confirm that the request from China for consultations with the European Union on the final EU countervailing duties on electric vehicles has been received," the official said.
This new request covers the EU's definitive measures, investigations, and provisional measures that were the subject of an earlier dispute launched by China on August 9.
According to the newspaper, this is the latest salvo in the escalation of trade tensions between Beijing and Brussels. Meanwhile, the EU is expected to send a negotiating team to China in the near future in an attempt to find a compromise with Beijing, under which producers will assume minimum price commitments that will make duties moot.
China is requesting consultations with the EU, which is the first step in settling any WTO dispute and will last 60 days before a request for a panel ruling on the dispute can be made. However, the WTO's highest appellate body is inactive due to a shortage of judges caused by the US's disillusionment with the organization.
However, China and the EU could settle their case through a backup system known as the MPIA, of which they are both members, the publication points out.