China Challenges U.S. EV Subsidy Policies at WTO, Alleging Discrimination

Beijing files a formal complaint against Washington's Inflation Reduction Act, claiming it unfairly targets Chinese electric vehicle manufacturers.

China has filed a complaint with the World Trade Organization (WTO) against the United States, alleging discriminatory practices in the U.S. electric vehicle (EV) subsidy policies under the Inflation Reduction Act.
The U.S. policy requires EVs to be assembled in North America and use batteries with domestically sourced components to qualify for tax credits, effectively excluding many Chinese-made EVs.
China's Ministry of Commerce claims the U.S. policies distort competition, disrupt the global new energy vehicle supply chain, and violate WTO rules.
The complaint comes amid escalating trade disputes between China and the U.S., with China seeking to protect its leading position in the global EV market.
Other countries and regions, including the European Union, have also expressed concerns about the U.S. policy, indicating a potential global subsidy race to the bottom.