The Middle Empire Strikes Back!

China has filed a complaint with the WTO regarding the tariffs imposed on electric vehicles by the European Union.

This honestly comes as no surprise, as Beijing had clearly warned that there would be reprisals, and they would match the harm suffered. The Chinese government has therefore confirmed that it has submitted a complaint to the World Trade Organization to contest the provisional additional tariffs that have been applied since July 5. As a reminder, these tariffs can go up to 38%, in addition to the basic 10%, on imports of electric vehicles from China.

The ministry vaguely cites a desire to “protect the rights and interests of the electric vehicle industry’s development” and laments a breach of global cooperation agreements in the fight against climate change… We will leave this latter point to individual interpretation, but it is not certain that fewer Chinese cars mean fewer electric cars on European roads.

An idea behind the head?

These European sanctions are not a hastily taken protectionist measure. They are the result of a very long and meticulous investigation launched last year into China’s public subsidies to national automakers. There is no suspense, as everyone knows that the Chinese automotive industry is living off a constant flow of cash. Perhaps with the exception of BYD, which, thanks to its status as the world’s leading seller of electrified cars, does not need anyone. The Chinese giant is, in fact, the least taxed.

If you think the European Union has gone too far, keep in mind that the United States has already increased tariffs on Chinese electric cars to 100%!

This Chinese complaint has two objectives, the first of which is obviously to have the additional tariffs declared illegal, but the second is more subtle. If Beijing is unsuccessful, the ruling will set a precedent and nothing will stop China from imposing outrageous tariffs on all subsidized European products! Meat, spirits, grains,… All these sectors benefiting from subsidies due to the CAP, the customs slap faucet would then be opened. I hold you, you hold me,…

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