• Tue. May 28th, 2024

China Accuses United States of Discriminatory EV Subsidy Policies in WTO Complaint

BySamantha Nguyen

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

The United States has been accused by China of discriminatory electric vehicle subsidy policies in a complaint lodged with the World Trade Organization (WTO). The complaint was prompted by a new rule that went into effect on January 1, 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.

China’s Commerce Ministry did not specify the reason behind the complaint but mentioned that the U.S. had developed discriminatory subsidy policies for new energy vehicles under President Joe 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 outcome of the case remains uncertain due to the WTO’s Appellate Body not being functional since 2019 due to U.S blocking the appointment of new judges. The European Union has also expressed concerns about Chinese subsidies for electric vehicles by launching an investigation into them.

The new U.S rule has led to only a limited number of electric vehicles being eligible for tax credits, prompting automakers to source components to meet the requirements. This has resulted in a decrease in the number of eligible EV models in the U.S market, raising concerns within the industry about maintaining competitiveness and access to subsidies.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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