The World Trade Organization on Friday ruled in favor of China in a case challenging U.S. tax credits for certain clean energy priorities passed by Congress during the Biden administration.
However, the dispute settlement panel did not have to rule on the highest-profile issue in China’s original complaint — U.S. tax credits for clean energy vehicles made in the United States.
That is because the Republican-controlled Congress terminated that provision in the One Big Beautiful Bill Act passed in July 2025 and China withdrew its claims against that measure.
That still left an array of investment and production tax credits for clean electricity that Beijing challenged as violating WTO rules against nondiscriminatory treatment. The panel upheld all of China’s claims and recommended the U.S. withdraw the credits by Oct. 1.
