TMTPost -- China has requested the World Trade Organization (WTO) dispute consultations and filed a complaint with the WTO against the European Union’s extra tariffs on Chinese electric vehicles (EVs), a spokesperson with China’s Ministry of Commerce (MOFCOM) said on Wednesday, according to website of the ministry.

Credit：Xinhua News Agency

China does not approve of or accept the European Commission's decision to impose extra tariffs on China-made EVs, and will continue to take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies, said the spokesperson.

China has repeatedly pointed out that the EU's anti-subsidy investigation on Chinese EVs has many unreasonable and non-compliant aspects, and such move is a protectionist practice of "unfair competition" in the name of "fair competition", the spokesperson noted.

China was also aware of the EU said it will continue to negotiate with China on price commitment, according to the spokesperson. China has been making every effort to address trade disputes through dialogue and consultation just as it always advocates, said the spokesperson. Since a new round of talks between technical teams of both sides are underway, the person urged the EU to work with China to push forward the negotiations in a constructive manner, following the principles of "pragmatism and balance" and taking into account of the core concerns of both sides, and to reach a mutually agreeable solution as soon as possible to avert escalation in trade friction.  

The spokesperson’s remark came after the EU has decided to impose hefty tariffs on Chinese EVs after its anti-subsidy probe for more than a year.  

The European Commission said on July 4 it imposed provisional countervailing duties of up to 37.6%, on top of the ordinary BEV import duty of 10%, on imports of BEVs from China. The regulatory body disclosed on October 4 its proposal to impose definitive countervailing duties on imports of BEVs from China has obtained the necessary support from EU Member States for the adoption of tariffs. The announcement cleared hurdles for the EU to introduce up to 45% definitive tariffs. Since a qualified majority of 15 EU members  completed, the proposed definitive tariffs are set to go into effect from next month for five years.

The European Commission proposed to add up to 35.3% to the current 10% duty faced by Chinese exporters. Its  latest proposal was formally approved and published in the EU's Official Journal on Tuesday, meaning they will take effect on Wednesday.

Based on the Commission's proposal,Tesla appears to be the big winner as the EU will impose an extra 7.8% tariff on Tesla EVs originated from China, much lower than the 20.8% under the provisional duties that took effect in July.

The Commission has slightly lowered tariff rates that three sampled Chinese EV makers. The additional individual duties on BYD, Geely and SAIC would be 17%, 18.8% and 35.3%, respectively. Other cooperating companies would be subject to a 20.7% tariff, while non-cooperating companies would be slapped with a 35.3% rate. All of these additional tariffs are on top of the EU’s standard 10% import duty of cars.

In the meantime, the EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the Commission's investigation, monitorable and enforceable, said the European Commission.