China has initiated legal action against the European Union following the EU’s decision to impose steep new tariffs on electric vehicles manufactured in China. The move comes in response to an anti-subsidy investigation launched by the European Commission just over a year ago.
The tariffs are expected to significantly impact Chinese automakers aiming to expand their presence in the European electric vehicle market. The European Commission’s ruling alleges that Chinese electric vehicle manufacturers have benefited from unfair subsidies, allowing them to sell vehicles at lower prices in the European market.
CGTN’s Li Shuang spoke with an industry expert to delve into the potential repercussions of this ruling. The expert highlighted that the tariffs could lead to increased costs for Chinese electric vehicle companies exporting to Europe, potentially slowing down their market growth and affecting global competitiveness.
“This lawsuit signifies China’s commitment to protecting its industries against what it perceives as unjust trade practices,” the expert noted. “If unresolved, the tariffs could not only strain trade relations between China and the EU but also impact consumers by limiting choices and driving up prices of electric vehicles in Europe.”
The legal proceedings are expected to unfold over the coming months, with both parties presenting their cases. The outcome will be closely watched by international investors, global automakers, and industry analysts, as it may set precedents for future trade relations and impact the dynamics of the global electric vehicle industry.
Reference(s):
cgtn.com
