JUST days after the European Commission imposed anti-subsidy tariffs of up to 35.3% on Chinese EVs, China’s Ministry of Commerce lodged a formal complaint with the World Trade Organization (WTO). China criticized the EU’s stance as not only “unacceptable” but also a fundamental breach of WTO rules, underlining Beijing’s view that such actions serve to stifle fair competition under the guise of protectionism. While the EU immediately dispatched a technical team to Beijing in an attempt to find middle ground on pricing commitments, China sees the recent move by the EU as an unjustified assault on its electric vehicle (EV) sector.

The presence of Italian President Sergio Mattarella and recent diplomatic efforts by French Minister Delegate Sophie Primas suggest that European nations, while wary of China’s competitive edge, are eager to avoid a full-scale trade conflict. For Beijing, the stakes are not merely economic but symbolic, representing its right to fair competition in a global market increasingly shaped by Western protective policies. China’s electric vehicle industry, seen as symbol of its innovation and environmental progress, is being challenged by barriers that echo past protectionist measures. In defending its EV sector on the global stage, China is signaling that it will not retreat under pressure, instead championing a global trading system that respects its place as a legitimate competitor.

For now, these interactions reveal the potential for a cooperative resolution. China’s trade relationship with the European Union is at a critical juncture. With the EU’s investigation into over 30 Chinese products – including electric........

© Pakistan Observer