China will soon play host to a trademark battle. Chinese automaker Chery Automobile Co Ltd has filed a complaint with the Chinese trademark regulator over Mercedes-Benz's use of the "EQ" name in the country. Mercedes is using the branding for a lineup of electric vehicles of green-energy vehicles, it plans to launch in the country.

Speaking with the Reuters, Chery confirmed that fact that it was lodging a trademark complaint against Mercedes, with the Trademark Office of the State Administration for Industry and Commerce. The Chinese car maker contends that it has been using the "eQ" branding for its two-door battery electric car for two years. As such, the Daimler unit should not be allowed to use the same name (capitalization does not count) in the country. The product lineup is the same as wel l, so this does has the potential of throwing people into confusion.

In case you are unaware of the developments, Mercedes showed off a concept electric car last year. The company planned to build the first EQ in a German factory. However, it also said that it could go for large scale EQ manufacture in China. The company has refrained from providing much data after that, but the conflict associated with the EQ branding is as clear as day.

The Chinese government is known for making an aggressive push for electric vehicles in the country. As such, there are a lot of opportunities to be had in the country. This conflict over branding has the potential to set the Daimler unit back. The Chinese regulatory authorities are also known to be quite sympathetic to domestic countries. As such, Mercedes will have to step very carefully here.