EU Confident in WTO Compliance Amid China EV Subsidy Dispute

The European Commission asserts that its investigation into Chinese electric vehicle subsidies and the subsequent measures align with World Trade Organization (WTO) rules. Despite China's objections, which prompted a WTO consultation request, the EU remains steadfast in its approach. The ongoing dispute highlights potential challenges resulting from a non-functional WTO Appellate Body.

The European Commission asserts that its investigation into Chinese electric vehicle subsidies and the subsequent measures align with World Trade Organization (WTO) rules. In a statement on Friday, the Commission confirmed the continuity of its probe.

Provisional tariffs up to 37.6% were imposed by the EU on Chinese electric vehicle (EV) imports in July, aiming to protect its domestic EV industry. China, disputing the EU's findings and tariffs, has requested WTO consultations, citing a lack of factual and legal basis for the EU's actions.

The Commission acknowledges the WTO procedures and assures a timely response to China's request. Despite the existing challenges within the WTO dispute settlement system, a Commission spokesperson emphasized the ongoing anti-subsidy investigation and the EU's alignment with WTO guidelines, supported by an interim appeal arrangement with China.

(With inputs from agencies.)