China knocks Biden’s EV subsidy rules at World Trade Organization

By Doug Palmer | 03/27/2024 06:25 AM EDT

The U.S. has effectively killed the WTO’s Appellate Body by blocking the appointment of new members, so Beijing may not be able to receive a final resolution of the issue.

Beijing on Tuesday formally accused the United States of violating global trade rules by excluding electric vehicles made with Chinese-sourced critical minerals from subsidies provided by the Inflation Reduction Act, targeting a key component of President Joe Biden’s ambitious climate agenda.

The U.S. legislation has “distorted fair competition, seriously disrupted the global new energy vehicle industry chain and supply chain and violated WTO rules such as national treatment and most-favored-nation treatment,” a Chinese government spokesperson said, according to an unofficial English translation of the statement.

China has taken the first step toward litigation at the World Trade Organization “to safeguard the interests of Chinese new energy vehicle companies and a fair competitive environment for the global new energy vehicle industry,” the spokesperson added.


The Office of the U.S. Trade Representative did not immediately comment on China’s move.