China expresses concern over US’ EV subsidy provisions

The provisions are suspected of violating the principles of the World Trade Organization such as most-favoured-nation treatment and national treatment.

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Tesla, Inc electric vehicles charge at supercharger location in Hawthorne, California, on Aug 9, 2022. (PATRICK T. FALLON / AFP)

September 23, 2022

BEIJING – China is concerned about the discriminatory electric vehicle subsidy provisions in the US Inflation Reduction Act, according to the Ministry of Commerce on Thursday.

Those provisions allow subsidies on pre-conditions such as localized assembly of whole vehicles in North America, which forms discrimination against relevant imported products, Shu Jueting, spokeswomen of the Ministry of Commerce, said at a media conference.

These provisions are suspected of violating the principles of the World Trade Organization such as most-favored-nation treatment and national treatment, she added.

As a member of the WTO, the United States should implement relevant investment policies under WTO rules and maintain a fair-competition-based trade order, she said, adding China will follow and evaluate the follow-up implementation of the US’ act, and will take measures to safeguard its legitimate rights and interests if necessary.

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