China is angry with the EU for raising import tariffs on Chinese cars, so China is appealing to the WHO.
The European Union has significantly increased import tariffs on Chinese cars due to unfair competition from China. Not news in itself, but the Chinese Ministry of Economic Affairs is today making a big boohoo at the World Trade Organization (WHO)
Tsunami of Chinese cars
The European market has been flooded with cheap electric cars from China over the past year. This is costing European car manufacturers market share. Price wars are breaking out and the parking lots in the ports are full of brand new, unsold Chinese cars looking for an owner.
So, following an investigation carried out by the EU into unfair state aid, new import tariffs were proposed. The European Union aims to prevent unfair competition on the European market for cars produced in China. The Chinese government is accused of granting subsidies to production facilities, allowing them to produce at a lower price.
Last July 5th, these higher import tariffs came into effect and can amount to up to 38 percent per car. Serious money.
China cries at WHO
China has already threatened to impose import duties of up to 25 percent on cars from outside China, including those that run on fuel, but first the country is crying foul at the WHO.
The Chinese believe that the measure violates the rules of the World Trade Organization. We read via Nu.nl that the appeal states that the country urges the EU to immediately correct the wrong practices. Otherwise, global cooperation in tackling climate change will be undermined. Eat that Ursula!
The alternative is of course to just become a European brand. That is really creative as opposed to complaining to the teacher.
Comments
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gregorius say
It’s good that they complain to the WHO.
And I hope the WHO does its job.
The WHO must do its job to allow fair and free trade.
Now I don’t know exactly whether the WHO will also investigate why the EU (and of course the US) is doing this, but if they do, they will also have to address the issue of ‘unfair competition through state aid’.
The fact that China is complaining to the WHO must also mean that they are at least taking the WHO seriously. That is at least positive -
tommycooker say
Well, if the WHO wants to rummage through Chinese state aid, they will be thwarted with “interference in internal affairs”, as China always does when uncomfortable issues threaten to come to light that do not suit them.
