China Seeks WTO Panel Over US EV Subsidy Dispute

China has requested the World Trade Organization to form an expert panel to resolve a dispute concerning electric vehicle subsidies under the U.S. Inflation Reduction Act. The Chinese commerce ministry claims the act discriminates against foreign products, creating unfair trade barriers and increasing green energy transition costs.

China has requested the World Trade Organization to establish an expert panel to address a dispute over electric vehicle subsidies under the U.S. Inflation Reduction Act, as stated by the country's commerce ministry on Monday.

After the passing of the IRA, which grants substantial tax credits to facilitate the purchase of electric vehicles and the production of renewable energy, China filed a complaint to the WTO in late March. The act aims to decarbonize the U.S. power sector, but China's attempts to resolve the dispute through consultations with the U.S. have been unsuccessful. Consequently, China is advancing its case at the WTO to safeguard its EV industry's rights and interests.

The Chinese commerce ministry criticized the IRA for excluding products from WTO members like China, arbitrarily establishing trade barriers, and escalating costs associated with the green energy transition. "We urge the U.S. to adhere to WTO rules and cease exploiting its industrial policies to hinder international collaboration on climate change," the ministry declared.