• Mon. May 20th, 2024

China Challenges U.S.’s Discriminatory Electric Vehicle Subsidy Policies with WTO Complaint

BySamantha Nguyen

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

In response to the U.S.’s discriminatory requirements for electric vehicle subsidies, China has filed a complaint with the World Trade Organization against the U.S. on Tuesday. The Chinese Commerce Ministry did not specify what prompted this move, but it accused the U.S. of having unfair policies that distort fair competition and disrupt global supply chains for new energy vehicles.

According to the Chinese Ministry, the 2022 Inflation Reduction Act, which is part of President Joe Biden’s climate legislation, contains discriminatory subsidy policies for new energy vehicles that exclude Chinese products from receiving 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. This policy violates WTO rules and distorts fair competition in the global market for electric vehicles.

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

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.

Due to the new U.S rule, only 13 out of over 50 electric vehicle models sold in the U.S are eligible for tax credits leading automakers to scramble to source parts that meet these requirements.

This move by China is significant as it challenges an important aspect of Biden’s climate change agenda while also potentially disrupting global supply chains for electric vehicles.

As a journalist I have rewritten this article making it unique by shuffling paragraphs order and moving text between them while keeping its original meaning intact.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

Leave a Reply