China takes Europe's EV tariffs to WTO as trade tensions rise

China has formally launched a complaint to the World Trade Organization over the European Union's decision to impose anti-subsidy duties on Chinese electric vehicles.

China brought the case to the WTO's dispute settlement mechanism on Aug. 9, according to a statement from the Ministry of Commerce. This is done to safeguard the development rights and interests of the EV industry, it added.

"Judgment in the EU's provisional conclusion lacks factual and legal foundation. It severely violated WTO rules and undermined the global cooperation on dealing with climate change," a ministry spokesperson said.

"We urge the EU to immediately correct its wrongdoing, and together safeguard China-EU economic and trade cooperation as well as the stability of EV supply chain," the spokesperson added.

Beijing's relationship with the EU has hit fresh lows in recent months, as the bloc brings its China policy closer to that of the U.S. The EU last month imposed provisional tariffs as high as 37.6 percent against some car imports from China after a months-long investigation into Chinese state aid to EV makers.

The move drew swift condemnation from Beijing. China has already threatened retaliation against European farmers and plane makers, and launched an anti-dumping probe targeting the French spirits industry.