China defies US EVs subsidies at WTO amid trade tensions
Date
7/16/2024 8:48:24 AM
(MENAFN) China has initiated a new action at the World Trade Organization (WTO) against US subsidies implemented under President Joe Biden's Green Deal, which targets the US electric vehicle sector. Beijing has labeled these subsidies as discriminatory and an example of unfair competition. This recent move by China, the world's second-largest economy, follows its initial approach to the WTO in March. After unsuccessful negotiations with Washington, China has now requested the WTO to "establish an expert group" to deliberate on the matter, as stated by China's Commerce Ministry.
The conflict centers on the massive aid program announced by the United States in 2022 under the Inflation Reduction Act. This program aims to support companies involved in the energy transition and electric vehicle manufacturing within the US. The Biden administration has been pushing this initiative as a countermeasure to Beijing's support for its own industry, marking a significant step in Washington's broader green strategy.
China's Commerce Ministry has expressed regret over the US law, emphasizing that it unfairly conditions subsidies on the origin of products, favoring those from specific regions like the United States, and consequently excluding Chinese products. The ministry further criticized the law, stating that despite any justifications, it remains inherently discriminatory, protectionist, and inconsistent with WTO rules. This dispute is a part of a broader array of trade conflicts between Beijing and Washington, which also include issues related to tariffs, advanced technology, and the social network TikTok.
MENAFN16072024000045015682ID1108444851
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.