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China Takes Legal Action Against EU Over Electric Vehicle Tariff Hike

China has launched a legal dispute against the European Union (EU) at the World Trade Organization (WTO) in response to the EU’s decision to raise import tariffs on Chinese electric vehicles (EVs). The case comes on the heels of an EU investigation that concluded Chinese carmakers benefit from state subsidies, giving them an unfair edge in the European market.

Key Details:

  1. WTO Complaint: China’s filing marks its second WTO challenge over higher tariffs, with the complaint aiming to address the EU’s determination that Chinese EV manufacturers benefit from unfair government support.
  2. Impact on Chinese Car Makers: The new EU tariffs range from 17% for BYD, 18.8% for Geely (Volvo’s parent company), to a significant 35.3% for SAIC Motor Corp, making it one of the most heavily affected companies.
  3. WTO Dispute Timeline: Under WTO dispute settlement rules, China and the EU have 60 days to negotiate a resolution. If unresolved, the case may proceed to a WTO panel ruling. However, the WTO’s highest appellate body remains inactive due to a shortage of judges, potentially complicating the resolution process.

The heightened tariffs, which took effect on November 1, reflect growing trade friction between Brussels and Beijing. EU officials argue that China’s subsidies and access to inexpensive raw materials have granted Chinese EV companies excessive leverage over European competitors. In response, Brussels is exploring solutions, such as adjusting price commitments, to address these market imbalances while upholding WTO principles.

Negotiations between the EU and Chinese officials are expected to intensify in the coming weeks, with an EU delegation likely to travel to China to pursue a compromise. Both sides aim to foster fair market conditions while respecting WTO guidelines.

MENA Fintech Funding Holds At $617 Million As Deal Activity Falls

MENA fintech raised $617 million across 57 transactions in H1 2026, matching H1 2022 funding but across 31 fewer deals. The gap points to a market increasingly shaped by larger transactions.

Fintech Deal Activity Falls To A Multi-Year Low

Transactions fell 50% year over year to 57, making H1 2026 the second-lowest first half for fintech deal activity in the period. Only H1 2023 recorded fewer deals, with 54.

Funding declined by 9%, indicating that fewer companies secured capital while total investment remained relatively concentrated. Larger transactions therefore accounted for a greater share of overall funding.

Large Rounds Support Overall Funding

Deals above $100 million were the main driver of funding, while capital deployed through smaller rounds declined. This made the region’s overall performance more dependent on a limited number of large transactions.

The pattern has appeared in previous years, but its impact varies by period. H1 2024 recorded no $100 million-plus round, when funding reached its lowest level, while H1 2025 posted a stronger first half before slowing in the second.

Fintech Gains Share Of Mena Funding

Fintech accounted for $617 million of the $1.35 billion invested across Mena in H1 2026, increasing its share of regional funding.

The higher share reflects fintech funding falling less sharply than the broader Mena venture market, rather than sector-wide growth. Fintech funding itself declined 9% year over year.

H1 Funding Does Not Set The Full-Year Trend

First-half funding has historically represented between just over one-third and more than half of annual fintech investment. Annualizing the H1 figure therefore indicates the scale of activity but does not provide a full-year forecast.

The timing of large deals can also materially change the annual picture. The absence of a $100 million-plus round in H1 2024 illustrates how quickly headline funding can shift when a few transactions account for a significant share of investment.

At $617 million, H1 2026 shows the current scale of MENA fintech funding, while the second half will provide more evidence on whether activity is stabilizing. The continued decline in deal volume remains a key trend.

The full MAGNiTT report covers quarterly trends, transaction sizes, funding stages, geographies, sectors, investor activity and fintech exits.

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