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The Ministry of Commerce Photo: VCG

China on Monday filed a lawsuit against the EU's final ruling on the anti-subsidy case against Chinese electric vehicles (EVs) at WTO under its dispute settlement mechanism in order to safeguard the interests of the development of the EV industry and the global cooperation on green transformation, a spokesperson of China's Ministry of Commerce (MOFCOM) said on Monday.

Previously, China filed a lawsuit with the WTO under its dispute settlement mechanism regarding the EU's preliminary anti-subsidy measures against China-made EVs. It is regrettable to see the European side announcing the final rulings to impose high countervailing duties on Chinese EVs despite numerous objections by relevant parties ranging from governments of EU member states, industries and the public, the spokesperson said.

The EU's final ruling lacks a factual and legal basis, which violates WTO rules, and is an abuse of trade remedy measures. This is trade protectionism in the name of imposing countervailing duties. The MOFCOM urges the EU to reflect on its wrongdoings, immediately rectify its non-compliant practices, and jointly safeguard the stability of the global EV industry chain and supply chain, as well as overall China-EU economic and trade cooperation.

On October 29, the European Commission (EC) concluded its anti-subsidy investigation by imposing definitive countervailing duties on imports of battery electric vehicles (EVs) from China for a period of five years.

"We have noted that the tariff rates in the final ruling (released in October) have been adjusted from the rates in the preliminary ruling in July, but the European side has not fundamentally changed its wrong approach. The ruling is not in line with WTO rules and fails to address the core concerns of Chinese and European businesses. China does not recognize nor accept it," He Yadong, a spokesperson for the MOFCOM, said on October 31 during a press conference.

The EU's anti-subsidy probe into China-made EVs has severely hindered cooperation between the EU and Chinese auto industries, currently a critical concern for industries on both sides, China's Commerce Minister Wang Wentao said during a meeting with French Minister Delegate for Foreign Trade and French Nationals Abroad, attached to the Minister for Europe and Foreign Affairs, Sophie Primas, in Shanghai on Sunday. 

Wang noted that technical teams from China and the EU are presently engaged in a second round of consultations.

Wang reiterated China's commitment to addressing China-EU trade friction through dialogue and consultation -- based on respect for facts and compliance with WTO rules.

Global Times