China Files WTO Lawsuit Against USA Over Electric Car Subsidies

The target is an appropriation from the Biden Administration's Inflation Reduction Act

Ironically, this is just another manifestation of the trade conflict between the two superpowers, China and the USA.

Beijing appealed to the World Trade Organization (WTO) on March 26 against US subsidies on battery-powered cars. The goal is “to protect China’s interests in the electric vehicle industry.” Under the guise of responding to climate change, providing carbon emission reductions, and protecting the environment, such subsidies are provided for the purchase and use of US-origin or region-specific imported goods.” China believes that the Biden Administration’s Inflation Reduction Act includes “discriminatory subsidies” that discriminate against certain products from China.

US law provides billions of dollars in tax breaks that are designed to stimulate the purchase of electric vehicles, as well as the transformation of industrial production to make it green. What is ironic here is that it is the Chinese industry, particularly producing electric cars, that the West has historically accused of benefiting from strong state support. This involved developing and perfecting batteries and electric vehicles, where Beijing has now become a world leader.

The EU is investigating dumping practices by China’s electric car industry. The PRC authorities consider it “a purely protectionist act that will undermine and distort global chains in the automotive industry.”