China has challenged the US Inflation Reduction Act’s EV tax subsidies and four tax credits related to renewable energy – it said the law violates World Trade Organization rules as its regional production requirements artificially sets trade barriers which push up the cost of green energy transformation.
China requested the World Trade Organization (WTO) establish a panel to settle a dispute over U.S. electric vehicle subsidies as part of the Biden administration’s Inflation Reduction Act, after the two sides failed to reach a negotiated solution, a spokesperson for China’s Ministry of Commerce (MOFCOM) said.
Beijing requested consultations in March with the United States over Biden’s signature climate change law, marking the first step of the dispute process. WTO rules required China and the United States to hold talks on the dispute during a 60-day consultation period before Beijing could take the next step of requesting a panel to adjudicate the dispute.
“Due to the failure of the United States to reach a solution through consultation with China, on July 15, China submitted a request to the WTO to set up an expert group,” a MOFCOM spokesperson said.
The US blocked China’s request for an international dispute settlement panel to decide whether key provisions of President Joe Biden’s Inflation Reduction Act violate global trade rules.
Beijing can make a second request for a panel, which the United States will not be able to block, at the WTO’s next Dispute Settlement Body (DSB) meeting Sept. 23. It could also request a special DSB meeting earlier, if it prefers not to wait.
Source: E&E News,