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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.

SpaceX Boosts Tesla Megapack Purchases To Support AI Expansion

SpaceX spent $329 million on Tesla’s Megapack battery systems during the first half of 2026, highlighting the growing energy demands of the company’s expanding artificial intelligence infrastructure.

According to SpaceX’s latest earnings report, $295 million of those purchases were made during the second quarter alone, marking a sharp increase in investment in large-scale energy storage.

Powering AI Infrastructure

The battery systems are expected to support SpaceX’s AI data centre operations, where electricity demand fluctuates significantly as computing workloads increase during AI training and inference.

Megapacks help stabilise power consumption by storing electricity and providing additional capacity during periods of peak demand, while also serving as backup power in the event of outages.

Growing Links Across Musk’s Companies

The purchases further illustrate the close operational ties between Elon Musk’s businesses. Before merging with SpaceX earlier this year, xAI had also invested heavily in Tesla’s battery storage systems for its own data centres.

SpaceX’s regulatory filing also showed the company had previously purchased $131 million worth of Tesla Cybertrucks, reflecting continued commercial activity between Musk-led companies.

AI Drives Infrastructure Investment

As AI companies expand computing capacity, demand for energy infrastructure is rising alongside investment in data centres. Battery storage has become an increasingly important component of those facilities, helping operators manage electricity costs while maintaining stable performance during intensive computing workloads.

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