China threatens to file a lawsuit with the WTO over possible EU punitive tariffs

China has threatened the EU with a lawsuit before the World Trade Organization (WTO) over the punitive tariffs it is considering on Chinese electric vehicles.

“China reserves the right to file a lawsuit with the World Trade Organization and will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese enterprises,” He Yadong, a spokesperson for the Chinese Ministry of Commerce, said on Thursday.

Does European Action Violate WTO Rules?

The tariffs would not only disrupt "the mutually beneficial cooperation" in the field of new energy vehicles, but also distort the global automotive industry and supply chain. The European action is suspected of violating WTO rules and is an "obvious act of trade protectionism."

Alternative Solution with China Possible?

The EU Commission had threatened preliminary anti-dumping duties on electric cars from China on Wednesday. According to the information, whether duties of up to 38.1 percent will actually have to be paid depends on whether another solution can be found with China.