• Fri. May 24th, 2024

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

BySamantha Jones

Mar 27, 2024
China plans to challenge Biden’s electric vehicle initiatives at the World Trade Organization

The Chinese Commerce Ministry has lodged a complaint with the World Trade Organization against the United States, accusing the country of implementing discriminatory requirements for electric vehicle subsidies. The complaint comes after a new U.S. rule took effect on January 1st, which states that electric car buyers are not eligible for tax credits ranging from $3,750 to $7,500 if certain battery components were made by companies from China, Russia, North Korea, or Iran.

The Chinese government did not specify the reason behind its complaint but stated that the U.S. had developed discriminatory subsidy policies for new energy vehicles under President Biden’s 2022 Inflation Reduction Act, which excluded Chinese products. This move is seen as distorting fair competition and disrupting the global supply chain for electric vehicles. The WTO allows member countries to file complaints regarding trade practices and seek resolution through a dispute settlement process.

The outcome of the case remains uncertain due to the fact that the WTO’s Appellate Body has not been operational since 2019 due to U.S. blocking the appointment of new judges. China, a major player in electric vehicle batteries and technology, has been rapidly expanding its auto industry, posing a potential challenge to established carmakers worldwide.

The European Union has also expressed concern about Chinese subsidies for electric vehicles by launching an investigation into these practices.

The new U.S. rule limits eligibility for tax credits to only a few electric vehicles models in the market prompting automakers to source components to meet requirements leading to decrease in number of eligible EV models in US market raising concerns within industry about maintaining competitiveness and access to subsidies.

In conclusion, China’s complaint against the United States highlights growing tensions between two superpowers over trade issues related to clean energy technologies such as electric vehicles and batteries.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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