EU files complaint to WTO against China over high-tech patent rules

RFI

20 January 2025 at 11:20 am·1-min read

European trade commissioner Maros Sefcovic, in 2020.

The European Union launched a new challenge at the World Trade Organization (WTO) on Monday against China's rules on royalty rates for high-tech patents, amid escalating trade tensions between Beijing and Brussels.

The European Commission accused China of pressuring innovative European high-tech companies into lowering their fees by allowing its courts to set binding worldwide royalty rates.

"The EU's vibrant high-tech industries must be allowed to compete fairly and on a level playing field," said Maros Sefcovic, the EU's trade commissioner.

"Where this is not the case, the Commission takes decisive action to protect their rights".

The action comes as trade tensions are soaring worldwide with tariff-loving Donald Trump set to be inaugurated as US President.

EU leaders chart independent future as Trump takes White House

It adds to a longer-running spat between Beijing and Brussels, which has seen the pair accuse each other of unfair practices and take a series of tit for tat measures.

The EU slapped hefty tariffs on electric cars made in China last year. In turn Beijing targeted European brandies and launched probes into EU subsidies of some dairy and pork products.

The latest challenge revolves around so-called "standard essential patents" protecting technologies enabling the manufacturing of goods to meet a certain standard.

China said on Monday it "regrets" the European Union's decision.

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