China Threatens to File Complaint with WTO over EU Tariffs on Chinese Electric Cars: Impact on Chinese Carmakers and German Manufacturers

Beijing has expressed its intention to file a complaint with the World Trade Organization (WTO) and take all necessary actions to defend the legitimate rights and interests of Chinese companies. This response comes after the EU Commission announced plans to impose tariffs of up to 38.1 percent on imports of electric cars from China starting on July 4. The Chinese government rejects accusations from the EU and the US that there is excess capacity in the Chinese auto industry resulting from subsidized exports.

In response to the planned punitive tariffs, China has announced that it will implement further measures to protect its interests. State-owned company SAIC, which has joint ventures with Volkswagen and General Motors, expressed deep concern over the tariffs, as did Chinese carmaker Geely, which owns Volvo and Polestar. German car manufacturers are also opposed to the punitive tariffs, fearing a trade war between the EU and China that could negatively impact sales of electric cars.

SAIC has been China’s largest carmaker for two decades but is facing pressure on sales and is in the process of reducing its workforce in response to the proposed tariffs. Geely has called on the European Commission to reconsider its decision and collaborate on finding solutions that promote fair competition in the industry.