• Mon. May 27th, 2024

China Files WTO Complaint Against U.S. Over Discriminatory Electric Vehicle Subsidy Policies

BySamantha Jones

Mar 27, 2024
China to oppose Biden’s electric vehicle agenda at the WTO

On Tuesday, China filed a complaint with the World Trade Organization against the U.S., accusing the country of having discriminatory requirements for electric vehicle subsidies. The Chinese Commerce Ministry did not specify what prompted this move. However, a new U.S. rule that went into effect on January 1 states that electric car buyers cannot receive tax credits of $3,750 to $7,500 if critical minerals or other battery components were manufactured by companies from China, Russia, North Korea, or Iran.

The Chinese Ministry claimed that the U.S. has formulated discriminatory subsidy policies for new energy vehicles under the 2022 Inflation Reduction Act, which is part of President Joe Biden’s climate legislation. These policies exclude Chinese products, distort fair competition, and disrupt the global supply chain for new energy vehicles.

Member countries of the WTO can file complaints against each other’s trade practices and seek relief through a dispute settlement process. However, the impact of this case remains uncertain. If the U.S. loses and appeals the ruling, the case may not progress due to the WTO’s Appellate Body not functioning since 2019.

China is a dominant player in the electric vehicle battery industry and has a growing auto industry that could challenge established carmakers globally. The European Union has also raised concerns about Chinese subsidies for electric vehicles

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

Leave a Reply