China Files Complaint Against US for Discriminatory Electric Vehicle Subsidy Policies

By Eleanor Harrison Mar27,2024
China set to oppose Biden administration’s electric vehicle strategies at the World Trade Organization

The Chinese government has filed a complaint against the United States with the World Trade Organization, accusing the U.S. of discriminatory requirements for electric vehicle subsidies. Under a new rule that took effect in January 2023, electric car buyers in the U.S. are no longer eligible for tax credits of $3,750 to $7,500 if critical minerals or battery components were made by Chinese, Russian, North Korean, or Iranian companies. These tax credits are part of President Biden’s climate legislation, known as the 2022 Inflation Reduction Act.

The Chinese Commerce Ministry did not specify what prompted the complaint but criticized the U.S. for formulating discriminatory subsidy policies for new energy vehicles under the act. The statement mentioned that these policies excluded Chinese products, distorted fair competition, and disrupted the global supply chain for new energy vehicles. Members of the WTO can file complaints about trade practices of other members and seek relief through a dispute settlement process.

The impact of the case is uncertain, as the functioning of the WTO’s Appellate Body has been blocked since late 2019 by the U.S.-China trade war. China is a dominant player in batteries for electric vehicles and has a rapidly expanding auto industry with strengths in electric vehicles and battery technology. The European Union has also launched its own investigation into Chinese subsidies for electric vehicles, concerned about potential threats to its auto industry.

With the new U.S rule, only 13 out of over 50 electric vehicles on sale in the U

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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