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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.

Cyprus Property Market Extends Its Growth Run As Foreign Demand Remains A Key Driver

Cyprus property sales continued to grow in August, extending a year-long run of annual increases across the island’s real estate market.

Transactions Remain Above 2025 Levels

Sale contracts reached 13,288 in the first eight months of 2026, according to the Department of Lands and Surveys. That was 14% more than the 11,689 contracts recorded during the same period last year, an increase of 1,599 transactions.

August brought 1,241 contracts, up 10% from 1,128 a year earlier. Activity was lower than July’s more than 2,000 contracts, but August is traditionally quieter for property transactions.

Annual growth remained positive throughout 2026, ranging from 5% in May to 27% in June. In July and August, sales were 11% and 10% higher than a year earlier, respectively.

Limassol And Paphos Drive Growth

Limassol and Paphos accounted for 1,070 of the 1,599 additional contracts recorded nationwide in the first eight months, or about 67%.

Limassol remained the largest market, with 4,354 contracts, up 17% from 3,720 a year earlier. August was its first monthly decline of 2026, with 395 contracts, down 5% year on year.

Paphos recorded the strongest growth among the five districts. Its eight-month total reached 2,654 contracts, up nearly 20% from 2,218, while August sales rose 20% to 267.

Larnaca Leads August Growth

Larnaca posted the strongest monthly increase in August, with 299 contracts, up 35% from 221 a year earlier. Its eight-month total reached 2,898, an increase of 13% from 2025.

Nicosia recorded 225 contracts in August, up 8%, taking its eight-month total to 2,789, or nearly 6% above last year. Famagusta remained weaker, with August sales falling 8% to 55, although its eight-month total was still up just over 8% at 593.

Foreign Buyers Support Demand

International buyers accounted for about 47% of sale contracts during the first eight months. Transactions with EU buyers rose 23% year on year, while sales to non-EU nationals increased 19%.

Foreign demand has helped sustain activity as property prices and construction costs rise. Residential prices increased 7.5% year on year in the first quarter, with apartment prices up 10.8% and houses 3%, according to the Central Bank of Cyprus.

Construction material prices were 3.33% higher in July than a year earlier, while prices rose 1.87% during the first seven months of 2026, Cystat data showed. Metal products and materials, including wood, insulation, chemicals and plastics, recorded some of the sharpest increases.

Uol
Aretilaw firm
The Future Forbes Realty Global Properties
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