Posted on 16 Aug 2024
The World Trade Organisation (WTO) announced Wednesday its members recently received the dispute consultation request from China regarding the EU’s anti-subsidy investigation on imported battery electric vehicles (BEVs) from China and the subsequent imposition of provisional countervailing duties.
In a filed document seen by Kallanish Power Materials, China considers that during the initiation, conduct and decision-making process of the investigation – particularly in the context of the provisional measures imposed on 3 July 2024 – the EU acted inconsistently with the WTO agreements, in both procedural and substantive aspects.
“The [European] Commission’s actions and omissions demonstrate a clear bias in the acceptance, use and assessment of evidence upon which its provisional measure is based,” the document reads.
China listed the legal basis for its request, mainly to support its conclusion that the EU and the EC failed to provide sufficient support for its view on Chinese subsidies. For example, when calculating the amount of alleged benefit conferred by support for capital investment, the provision of capital was “wrongly treated as a loan,” it claims.
“The transition in the vehicle industry from traditional passenger cars to battery electric vehicles is an inevitable historical trend, in keeping with the twin goals of industrial upgrading and achieving carbon emission reduction,” Beijing says. “This transition also aligns with the interests of global consumers. The provisional measures imposed by the EU on Chinese BEVs will obstruct the development of an industry that benefits global stakeholders and consumers.”
The EU Chamber of Commerce in China argues that protectionism will only bring high protection costs as Europe’s transition to automotive electrification requires a fully competitive environment rather than protectionism.
It revealed that according to its survey of over 30 enterprises and organisations in the new energy industry, 82% said that since the anti-subsidy investigation was launched, their confidence in investing in Europe has dropped significantly; 67% believe that it has had a negative impact on their brand reputation; 83% said that their European partners have expressed concerns about cooperation with them, delaying or reducing investment-related cooperation; and 72% said that their local employees in Europe were worried about their job prospects.
China’s appeal with the WTO was filed on 9 August. China’s commerce ministry threatened to file a lawsuit to the WTO shortly after the EU announcement. Brussels defends that its investigations were carried out “fully in line” with international and EU legal standards.
On 5 August, an EU spokesperson told Kallanish that the Chinese government could request a dispute settlement at the WTO “without needing to resort to retaliation.”
Source:Kallanish Power Materials
