Tiếng Việt
中文 (中国)
日本語
On August 9, 2024, China filed a lawsuit against the European Union (EU) at the World Trade Organization (WTO) over the EU’s imposition of countervailing duties, subsidies, and import taxes on electric vehicles (EVs) exported from China to EU territories.
Earlier, in June 2024, the EU issued an order imposing countervailing duties on imported electric vehicles from China, ranging from 17.4% to 37.6%. The EU justified this by claiming that Chinese companies were unfairly benefiting from government subsidies, leading to lower-priced electric vehicles being sold in the European and international markets, thereby causing dumping.
According to EU regulations, both parties have until November of the same year to negotiate and attempt to reach a consensus. If no new agreement is reached by this deadline, the provisional duties currently in place will become official.
China asserts that its support for Chinese companies is entirely in accordance with WTO rules and does not constitute subsidies. Additionally, China accuses the EU of escalating USA-China trade tensions, which began in May 2024, potentially leading to a trade war reminiscent of 2018, with the risk of dragging surrounding nations into the conflict.
The Chinese Ministry of Commerce argues that the EU’s import duties violate WTO rules and harm global cooperation on climate change mitigation. Electric vehicles, being zero-emission, play a crucial role in reducing carbon emissions. By restricting the global production and commercialization of electric vehicles, the EU could slow the progress of environmental protection efforts, prioritizing profit over the pursuit of a greener world.
Since June of this year, with the support of its business sector, China has launched an investigation into French cognac and European pork exports to China as a retaliatory measure. These small-scale tensions have the potential to escalate into a full-blown trade war between the two sides, affecting all involved nations. However, this situation could also present both opportunities and challenges for developing countries like Vietnam.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
