China has taken a significant step by filing a complaint at the World Trade Organization (WTO) regarding the United States' subsidies for electric vehicles. The Chinese Commerce Ministry announced on Tuesday that it has initiated the WTO dispute settlement process to challenge American regulations that mandate vehicles to utilize specific regional parts in order to qualify for subsidies.
The Ministry's statement, released online, criticized the U.S. for implementing what it deemed as discriminatory subsidy policies for new energy vehicles under the Inflation Reduction Act, purportedly in response to climate change concerns. According to the statement, these policies unfairly exclude Chinese products, leading to a distortion of fair competition and disruption of the global supply chain for new energy vehicles.
This move by China underscores the escalating trade tensions between the two economic powerhouses, particularly in the realm of clean energy technology. The complaint lodged at the WTO signifies China's commitment to challenging what it perceives as unjust trade practices that hinder its access to international markets.
