China is pushing back against Europe’s recent tariffs on its electric vehicle (EV) companies, with the Chinese commerce ministry announcing plans on Monday to file a lawsuit with the World Trade Organization (WTO) over the European Union’s new tariffs on Chinese EV imports.
In October, the EU approved significant tariffs on Chinese EV manufacturers, including BYD, which now faces a 17% levy. Some automakers will see tariffs as high as 35.3%, in addition to an existing 10% tax.
China’s commerce ministry released a translated statement criticizing the tariffs as lacking “factual and legal basis,” claiming they violate WTO rules. Previously, China had requested a dispute consultation with the WTO over the EU’s subsidies, a request the organization confirmed it had received in August.
The EU’s tariffs have raised concerns over possible Chinese retaliation. China has already begun probes into European products like brandy and cheese, potentially paving the way for trade barriers on European automakers in China.
Germany’s auto giants, including Volkswagen, BMW, and Mercedes, heavily rely on the Chinese market but are facing increasing competition from domestic EV makers offering more affordable, tech-forward options. Despite the EU’s trade measures, some Chinese companies are continuing their European expansion. BYD, for example, is planning new factories in Hungary and Turkey, while EV firms Xpeng and Leapmotor have recently entered additional European markets.
