• Sun. May 26th, 2024

China Files Complaint Against U.S. over Discriminatory Electric Vehicle Subsidies

BySamantha Nguyen

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 it of discriminatory requirements for electric vehicle subsidies. The Chinese Commerce Ministry did not specify what prompted this move, but it is believed that the new U.S. rule that went into effect on January 1, which 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, is the main reason behind this action.

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 and distort fair competition in the global market for new energy vehicles. China believes that these policies are unfair and disproportionate and have negatively impacted its industry and consumers.

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. This means that there may be no resolution to this dispute in sight for some time to come.

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 similar issues with eligibility criteria for tax credits in Europe as well as concerns about environmental standards set by China’s government-backed automakers compared to those set by EU member states.

Due to this new U.S rule only 13 out of over 50 electric vehicle models sold in

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.

Leave a Reply