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Beijing filed a complaint with the World Trade Organization against the European Union’s decision to impose high tariffs on Chinese electric cars. The EU imposed tariffs of up to 35 percent after finding that Chinese state subsidies were giving Chinese automakers an unfair advantage over European ones. However, Germany and Hungary have expressed concerns about the potential repercussions of these tariffs, fearing a trade war with China.

China strongly criticized the EU’s decision, stating that they do not agree with the tariffs and have taken the matter to the WTO for resolution. The Chinese commerce ministry has vowed to protect the rights of Chinese companies through all necessary measures.

On the other hand, EU trade chief Valdis Dombrovskis defended the tariffs as a way to ensure fair competition in the electric vehicle sector. Despite opposition from some EU member states, the tariffs have been implemented and will be in effect for five years. These tariffs also apply to vehicles made in China by foreign companies like Tesla, with varying rates depending on the manufacturer.

The EU’s move comes as part of an effort to protect its automobile industry, which employs millions of people across the continent. While France welcomed the decision, major European carmakers, including Volkswagen, have expressed concerns about the impact of these tariffs on global trade and prosperity.

Negotiations between the EU and China are ongoing, with the possibility of lifting the tariffs if a mutually satisfactory agreement is reached. However, differences remain between the two sides, particularly regarding the establishment of minimum prices for Chinese car manufacturers.

The EU’s decision to impose tariffs on Chinese electric cars is part of broader trade tensions between the two economic powers. Both China and the EU have initiated investigations into each other’s trade practices, with the potential for retaliatory measures on both sides.

In addition to the EU, other countries like Canada and the United States have also imposed high tariffs on Chinese electric car imports in recent months. This global trend reflects the increasing competition and challenges in the electric vehicle market, driven by concerns over fair trade practices and market access.