• Sun. Jun 23rd, 2024

Uncertain Waters Ahead: The Battle for Fair Trade in the Global Supply Chain of New Energy Vehicles”.

BySamantha Johnson

Mar 27, 2024
China set to oppose Biden administration’s electric vehicle strategies at the World Trade Organization

The Chinese Commerce Ministry has filed a complaint against the United States with the World Trade Organization, accusing it of formulating discriminatory subsidy policies for new energy vehicles. The complaint cites President Biden’s climate legislation, known as the 2022 Inflation Reduction Act, which excludes Chinese products and distorts fair competition in the global supply chain for new energy vehicles. Under a new U.S. rule that went into effect on January 1, electric car buyers are no longer eligible for tax credits of $3,750 to $7,500 if critical minerals or battery components were made by Chinese, Russian, North Korean, or Iranian companies.

The impact of the case is uncertain as the functioning of the WTO’s Appellate Body has been blocked since late 2019 by the US. The European Union has also launched its own investigation into Chinese subsidies for electric vehicles, concerned about potential threats to its auto industry. With this new U.S. rule, only 13 out of over 50 electric vehicles on sale in the U.S are eligible for tax credits, a decrease from about two dozen models in 2023. Automakers are working to source parts that would make their models eligible for these credits.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

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