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China filed a World Trade Organization complaint against the U.S. on Tuesday over what it says are discriminatory requirements for electric vehicles subsidies.
Starting this year, U.S. car buyers are not eligible for tax credit of $3,750 to $7,500 if critical minerals or other battery components were made by Chinese, Russian, North Koreanles or Iranian companies. The credits are part of U.S. President Joe Biden’s signature climate legislation, named the 2022 Inflation Reduction Act.
The Chinese Commerce Ministry said in a statement posted online that the U.S. formulated discriminatory subsidy policies for new energy vehicles in the name of responding to climate change. It said the U.S. move excluded Chinese products, distorted fair competition and disrupted the global supply chain for new energy vehicles.
Member countries of the Geneva-based WTO can file complaints about the trade practices of other members and seek relief through a dispute settlement process.
China is the dominant player in batteries for electric vehicles and has a rapidly expanding auto industry that could challenge the world’s established carmakers as it goes global. Its strength is in electric vehicles and its companies have become leaders in battery technology.
Source:AP
