China refuted allegations of violating World Trade Organization (WTO) rules by using prohibited subsidies for its electric vehicles (EVs). A spokesperson for China’s foreign ministry, Mao Ning, asserted that the success of Chinese EVs in international markets stems from “comparative advantages and market laws,” not illicit subsidies.
The statement comes in response to U.S. President Joe Biden’s remarks accusing China of subsidizing EVs to saturate the American market, a concern echoed by other U.S. officials. Mao emphasized that subsidies cannot compensate for industrial competitiveness, adding, “There are no prohibited subsidies stipulated by the WTO.”
Contradicting Biden’s claims, Mao highlighted that China exported a mere 13,000 EVs to the United States last year, questioning the notion of flooding the market. Mao reiterated that China’s new energy products, including EVs, are the result of enterprises’ efforts, not government subsidies.
Biden has pledged to escalate tariffs on several Chinese sectors, proposing to quadruple import duties on Chinese EVs to over 100% and double semiconductor duties to 50%. These measures indicate the escalating tensions between the two countries over trade and economic policies.