The Sino - EU Electric Vehicle Trade War Escalates: China Appeals Against EU Anti - subsidy Duties

On October 29 local time, the Chinese government officially filed an appeal with the World Trade Organization (WTO), expressing strong dissatisfaction and firm opposition to the European Unions decision to impose high counter - subsidy duties on Chinese electric vehicles. This appeal marks a further escalation of tensions between China and the EU in the field of electric vehicle trade, and has also attracted widespread attention from the global market regarding the future direction of trade.

According to Xinhua News Agency, the Ministry of Commerce in Beijing conveyed this news at a press conference on the same day, explaining in detail the position of the Chinese government. The Ministry of Commerce pointed out that the EUs final measure of imposing high counter - subsidy duties on electric vehicles produced in China is without legal and factual basis and violates relevant WTO rules. The Chinese government believes that the EUs move is an abuse of trade remedy measures, a typical practice of trade protectionism in the name of compensation, which seriously damages the development interests of Chinas electric vehicle industry and the efforts of global green transformation cooperation.

The specific measures of this counter - subsidy duty will be officially implemented on October 31, with a maximum tariff rate of up to 45%. The specific rate depends on the degree of cooperation of relevant Chinese enterprises with the European Commission and Brussels during the investigation period. The European Commissions investigation aims to assess whether the extensive support of the Chinese government for the electric vehicle industry has led to unfair competition, thus having a negative impact on the EU market.

The spokesperson of the Ministry of Commerce of China emphasized that China will resolutely safeguard the legitimate rights and interests of Chinese enterprises and the healthy development of the electric vehicle industry through the WTOs dispute settlement mechanism. He said that China urges the EU government to promptly correct its illegal acts, stop the unfair treatment of Chinese electric vehicles, so as to maintain the stability of the global electric vehicle industry chain and supply chain and promote the healthy development of China - EU economic and trade cooperation.

The EUs decision on the counter - subsidy duty on China reflects its concern about the rapid rise of Chinas electric vehicle industry. In recent years, Chinese electric vehicle manufacturers have rapidly occupied an important share of the global market by virtue of technological innovation and large - scale production, becoming the main competitors of traditional automobile - powerful countries such as Germany. The EU is worried that Chinas government subsidy policy may give Chinese electric vehicles an unfair competitive advantage in terms of price and technology, thus impacting the EUs domestic industry.

However, the response of the Ministry of Commerce of China clearly points out that the EUs decision lacks substantial legal and factual basis and is completely motivated by protectionism. The development of Chinas electric vehicle industry is based on market demand and technological progress, and by no means relies on unfair government subsidies. China believes that the EUs counter - subsidy investigation and taxation measures not only damage the normal trade relations between China and the EU, but also are not conducive to the healthy development of the global electric vehicle industry and the realization of the goal of green transformation.

This appeal also highlights the complexity and challenges existing in the global trading system. As an important platform for resolving global trade disputes, the effectiveness and fairness of the WTO are once again tested in this incident. The competition between China and the EU, two major economies, in the field of electric vehicles not only involves the adjustment of trade policies, but also multiple levels such as technical standards, market access and industry chain cooperation.

Industry experts pointed out that the EUs decision to impose high counter - subsidy duties on Chinese electric vehicles may have a profound impact on the global electric vehicle market. On the one hand, in the short term, it may lead to a decline in the sales of Chinese electric vehicles in the EU market, affecting the international market share of Chinese enterprises; on the other hand, in the long run, this measure may prompt Chinese electric vehicle manufacturers to accelerate their internationalization pace, seek new market opportunities and partners, and further enhance their global competitiveness.

In addition, this trade dispute may also trigger other countries to review and impose tariff measures on Chinese electric vehicles, further intensifying the differentiation of the global electric vehicle market. Chinas strong opposition and appeal demonstrate the firm stance of the Chinese government in dealing with trade protectionism, and also provide an important reference for the future development direction of China - EU trade relations.

The EU, on the other hand, insists that its counter - subsidy investigation is based on the maintenance of fair market competition. The European Commission said that this counter - subsidy measure is the result of strict investigation and evaluation, aiming to protect the EUs domestic industry from unfair competition. The EU emphasizes that trade remedy measures are legal tools in international trade rules and must be used reasonably on the premise of ensuring fair competition.

However, in the face of Chinas opposition and appeal, there are also different voices within the EU. Some EU member states and industry representatives are worried that high counter - subsidy duties may trigger retaliatory measures, leading to a further deterioration of bilateral trade relations and damaging the overall economic interests and international reputation of the EU. How to avoid falling into a vicious trade war while safeguarding its own industrial interests has become a problem that the EU needs to seriously consider.

This trade dispute between China and the EU in the field of electric vehicles also reflects the profound changes in the global trade pattern. With the enhancement of Chinas economic strength and global influence, the trade competition between China and the EU will become more intense and complex. The two sides need to find opportunities for cooperation in the competition, resolve trade disputes through dialogue and negotiation, and promote the establishment of a more fair, transparent and sustainable international trading system.