China has formally requested the World Trade Organization (WTO) to establish an expert panel aimed at resolving a dispute concerning electric vehicle (EV) subsidies under the U.S. Inflation Reduction Act, the country’s commerce ministry announced on Monday.
The world’s second-largest economy initiated the WTO dispute in late March following the enactment of the IRA by the Biden administration. This comprehensive legislation allocates substantial tax credits to bolster consumer EV purchases and incentivize renewable energy production, aligning with the White House’s efforts to decarbonize the U.S. power sector.
According to a statement from the Chinese commerce ministry, attempts to resolve the issue through consultations with the U.S. have proven unsuccessful in safeguarding the rights and interests of China’s EV industry. Consequently, China is escalating the matter by advancing its case within the WTO framework.
In its official statement, China’s commerce ministry criticized the IRA for allegedly discriminating against WTO member products, including those from China, through the imposition of artificial trade barriers. The ministry further asserted that such measures inflate the costs associated with transitioning to green energy.
“We urge the U.S. to adhere to WTO regulations and cease the misuse of industrial policies that undermine global cooperation on climate change,” China’s commerce ministry emphasized.
