Contention over Electric Vehicle Imports
Brussels is accused by Beijing of violating World Trade Organization (WTO) rules. China has seized the WTO in response to the European Union’s temporary surtax policy on Chinese electric vehicle imports adopted in July. Previously, vehicles manufactured in Chinese factories were taxed at 10% in the EU.
China’s Response and Calls for Correction
China has called on the EU to rectify its actions immediately, highlighting the need for compliance with WTO regulations. The tariffs imposed by Beijing are currently temporary, giving a window until November for dialogues between the two parties.
Global Impact of China’s Automotive Industry
China overtook Japan as the top global car exporter last year, driven by early investments in batteries for electric vehicles. With competitive pricing, Chinese brands have rapidly gained market share in Europe, rising from less than 2% to nearly 8% in the electric vehicle market by the end of 2023. This growth is facilitated by the EU’s planned ban on petrol and diesel engine sales by 2035 in efforts to combat climate change.
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