China has threatened to take the European Union to the World Trade Organization (WTO) over the high punitive tariffs it is considering on Chinese electric vehicles.
“China reserves the right to complain to the World Trade Organization and will take all necessary measures to vigorously defend the legitimate rights and interests of Chinese companies,” He Yadong, a spokesperson for the Ministry of Commerce, said. Thursday.
The EU tariffs would not only “disrupt mutually beneficial cooperation” on electric vehicles, but also disrupt the global car industry and supply chains, he said.
The European approach is a “clear act of trade protectionism” and could breach WTO rules, the spokesperson continued.
The European Commission, the EU’s executive arm, threatened on Wednesday to impose import duties on Chinese EVs of up to 38.1% after an investigation found evidence of illegal support from subsidies.
The higher tariffs will only be applied if the EU and China cannot find a solution to the issue, and would come into effect from July 4.