Beijing: China has formally requested the World Trade Organization (WTO) to establish an expert panel to address its dispute over new energy vehicle subsidies under the U.S. Inflation Reduction Act, the Chinese commerce ministry announced on Monday.
The dispute centers around subsidies provided by the U.S. government for electric vehicles, which China claims violate WTO regulations and create an unfair competitive advantage. China initiated the WTO dispute in late March, seeking consultations with the U.S. to resolve the issue. However, the Chinese commerce ministry noted that the U.S. has not taken adequate steps to address China’s concerns through these consultations.
The Chinese commerce ministry emphasized the importance of fair trade practices and adherence to international rules. “We urge the US to abide by WTO rules and stop abusing its industrial policies to undermine international cooperation on climate change,” the ministry stated. The statement reflects China’s broader concerns about the impact of U.S. policies on global efforts to combat climate change and promote sustainable development.
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This move by China to escalate the dispute to a formal panel at the WTO highlights the increasing tensions between the two largest economies in the world. The decision to request an expert panel indicates China’s determination to challenge what it sees as protectionist measures by the U.S. that could harm international trade relations and hinder the development of the global electric vehicle market.
As the dispute progresses, it will be closely watched by international trade experts and stakeholders in the automotive industry. The outcome of the WTO’s deliberations could have significant implications for the future of electric vehicle subsidies and the broader context of U.S.-China trade relations.
