China has formally requested dispute consultations with the European Union at the World Trade Organization (WTO) concerning the EU’s ongoing anti-subsidy investigation into imported battery electric vehicles (EVs) from China. The request, which also addresses the EU’s imposition of provisional countervailing duties on these vehicles, was circulated to WTO members on August 14.
The Chinese government contends that the EU’s actions are inconsistent with its obligations under international trade rules, specifically citing Article VI of the General Agreement on Tariffs and Trade (GATT) 1994 and several provisions of the WTO’s Agreement on Subsidies and Countervailing Measures.
“The measures imposed by the EU are not only unwarranted but also detrimental to fair trade practices,” a Chinese official said, emphasizing the need for a balanced and rules-based approach in addressing trade disputes.
This request for consultations marks the formal initiation of a dispute at the WTO. Such consultations offer both parties an opportunity to negotiate and resolve the issue without moving to litigation. However, if the discussions fail to produce a resolution within 60 days, China could request the establishment of a WTO panel to adjudicate the matter.
The escalating trade tensions highlight the growing challenges in the global electric vehicle market, with China asserting that its EV exports are being unfairly targeted. “We remain open to dialogue and hope for a constructive resolution that aligns with WTO principles,” the Chinese official added, signaling Beijing’s preference for a negotiated settlement.
