China said on Thursday it"reserves the right" to file a suit with the World Trade Organization over planned new European Union tariffs on imports of its electric vehicles.
The European Commission has proposed a provisional hike of tariffs on Chinese manufacturers: 17.4 per cent for market major BYD, 20 per cent for Geely and 38.1 per cent for SAIC."China reserves the right to file a suit to the WTO and take all necessary measures to resolutely defend the rights and interests of Chinese companies," Beijing's commerce ministry spokesman He Yadong told a briefing.
The European Commission pointed on Wednesday to"unfair subsidisation" in China, which it said"is causing a threat of economic injury" to EU electric car makers. The EU tariffs, while high, are lower than the 100 per cent rate the United States imposed on Chinese electric cars from last month.Europe's automotive sector is the jewel in its industrial crown - boasting brands such as Mercedes and Ferrari - but it faces threats including China's head start in the switch to electric.