China filed a complaint with the World Trade Organization (WTO) on the basis of the fact that US subsidies to domestic electric vehicles to combat climate change stipulated by the US Law on reducing inflation in 2022 contradict the rules of competition.
The statement of the Chinese Ministry of Trade says that the exclusion of imported products from China and other WTO member countries from the market, while domestic manufacturers are supported by subsidies, is a dishonest competition.
The statement notes that this practice is damaged by the global industry and the supply chains in the production of electric vehicles. The filing of a complaint is aimed at protecting the interests of Chinese manufacturers and maintaining honest competition in the global sector of new energy vehicles.
According to Beijing, the United States violated the Rules of the WTO prohibiting the national special regime and special regime for the factory countries, and the Washington administration calls to correct its discriminatory policy of subsidizing and protect the stability of the world industry and the supply chains of new energy vehicles .
The document emphasizes that China respects the use by members of the WTO industrial subsidies in accordance with the rules for the promotion of economic and social development.
The Beijing Administration also supports the production of electric vehicles on batteries, hybrids and fuel elements, which it calls “New Energy Vehicle” (NEV).
In October 2023, the European Union Commission began an investigation of subsidies for the import of electric vehicles from China on the basis that this led to unfair competition for European automakers.