China takes grievances to WTO over Biden EV policy

China has filed a complaint with the World Trade Organization (WTO) against the Biden administration’s EV incentive policy. Bloomberg Reports.

China’s Ministry of Commerce said in a statement on Tuesday that new rules for the federal EV tax credit, implemented in 2022 as part of the Inflation Reduction Act, are “discriminatory” and have “seriously distorted” the global EV supply chain.

2022 Xpeng G9

Supply-chain requirements that went into effect earlier this year have already limited the number of EVs Eligible for the full $7,500 tax credit. But the rules specifically seek to restrict EVs with battery units or that are sourced from businesses controlled by “foreign entities of concern”—including the Chinese government—from receiving incentives.

Foreign Content LimitationApplying to firms that are “owned, controlled or subject to the jurisdiction or direction of the government of a foreign country” could lead to potential problems for the Polestar, or Volvo-companies, to turn to the US Assembly. But have an ownership chain that traces back to China or a combination of China and shareholders.

2025 Polestar 3

2025 Polestar 3

Automakers face two different proposals to protect the auto industry from China in this election year of 2024: Biden’s supply-chain-centric approach or Trump’s tariff-centric approach. He made the announcement earlier this month at a campaign rally for the former president and presumed challenger to Biden Apply 100% duty From Chinese companies to Mexico-made cars, EV or not.

The US is not alone in curtailing EV incentives for Chinese-made vehicles. France also acted to exclude China Its new EV incentiveAnd the European Union is expected to impose additional tariffs on EVs imported from China, Bloomberg notes.

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