In July, the European Union announced temporary tariffs of up to 38% on imports of Chinese electric vehicles, citing concerns over illegal subsidies for local manufacturers.

Since July 2024, importers of Chinese electric vehicles must post security deposits while the EU Commission evaluates the applicability of the tariffs.

Brussels concluded after a lengthy investigation that Chinese electric vehicles are unfairly subsidized and pose a threat to the EU's automotive industry, with tariffs potentially reaching up to 37.6 percent.

Beijing has filed an appeal with the World Trade Organization (WTO) against the European Union's additional tariffs on Chinese electric vehicles.

The European Commission is reviewing China's WTO request and plans to respond according to WTO procedures, expressing confidence in the legality of its tariffs.

China's Ministry of Commerce claims the EU's tariffs lack legal basis and violate WTO rules, urging for a correction to maintain economic cooperation.

China is urging the EU to rectify what it sees as misconduct to ensure stability in economic and trade relations, particularly concerning electric vehicle supply chains.

The EU is attempting to balance defending its auto industry and promoting green growth while avoiding direct conflict with Beijing.

European Commissioner for Trade, Valdis Dombrovskis, expressed willingness to negotiate a mutually acceptable solution to the import dispute, contingent on changes to China's subsidy policies.

The EU faces a critical decision on how to handle the rise of Chinese EV manufacturers, balancing market access, security risks, and support for its own automotive industry.

This dispute is part of a broader context in which the EU is investigating Chinese subsidies in various green technology sectors, including solar panels and wind turbines.