May 24, 2024 12:46 am
China to oppose Biden’s electric vehicle agenda at the WTO

On Tuesday, China accused the United States of having discriminatory requirements for electric vehicle subsidies, filing a complaint with the World Trade Organization. The Chinese Commerce Ministry did not specify what prompted this move, but it mentioned that a new U.S. rule that went into effect on January 1 is to blame. According to the Chinese Ministry, 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.

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 fact that if the U.S loses and appeals the ruling, the case may not progress because of 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 due to these new regulations. As a result of this new 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 .

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