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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.

Lovable Raises $400 Million At $13.3 Billion Valuation

European vibe-coding startup Lovable has raised $400 million in a Series C round, confirming earlier reports that the company was seeking a new funding round at a valuation of $13.3 billion.

Menlo Ventures and the Scaleup Europe Fund led the round, with more than a dozen additional investors participating. The new funding comes just eight months after Lovable raised $330 million at a $6.6 billion valuation.

Rapid Growth Drives New Funding

Lovable reached $500 million in annualised revenue in June, highlighting the rapid growth of its AI-powered software development platform. The company says its projects now number around 60 million and attract 900 million monthly visitors.

Alongside its growth in users, Lovable has expanded its technology infrastructure. The company has developed its own AI model while continuing to offer access to other leading models.

In June, Lovable also signed a multiyear agreement with Google Cloud that is expected to increase its usage of the platform fivefold.

Expanding Beyond Vibe Coding

Lovable has also begun investing in other European startups working on AI-powered development tools. Among them is Danish company Atech, which is developing software designed to bring vibe coding into hardware development.

With the latest funding, Lovable is now positioned to further expand its platform and infrastructure as demand for AI-assisted software development continues to grow.

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