Hey there, global news enthusiasts! 🌍 Did you hear? China is stepping up its game in the electric vehicle (EV) arena. 🚗⚡ On Monday, the Chinese Ministry of Commerce announced it's requesting the World Trade Organization (WTO) to set up an expert panel to look into a dispute with the U.S. over EV subsidies under the Inflation Reduction Act (IRA). 💼🌱
The IRA, signed in August 2022, includes a whopping $369 billion for climate and energy initiatives. 🌳💰 But here's the catch: China says the act unfairly promotes the use of products from specific regions (hint: the U.S.) and sidelines products from other WTO members, including China. 🚫🌐
Back in March, China asked for WTO consultations with the U.S. about these tax credits, aiming to promote fair competition in the EV market. But talks haven't led to a solution yet. 🤷♂️
A spokesperson from the Ministry emphasized that China's NEV (New Energy Vehicle) industry has been a big player in driving the global green energy transition. 🌎⚡ They stressed that China is committed to upholding the multilateral trading system and wants to protect international efforts to tackle climate change. 🌿🤝
\"We urge the U.S. to abide by WTO rules and stop using industrial policies that undermine international cooperation on climate change,\" the spokesperson said. 🗣️🌐
According to WTO rules, if consultations don't resolve a dispute within 60 days, the complaining party can request a panel. Looks like China is taking that step! 📄⏳
Ji Wenhua, a law professor at the University of International Business and Economics in Beijing, noted that the U.S. measures could be seen as import substitution subsidies, favoring domestic over imported goods. 🏭🚫🌍
Ji highlighted that the IRA has disrupted the global EV industry, increased energy transition costs, and affected fair competition. By moving forward with WTO litigation, China shows its commitment to fair trade and offers a chance for other countries to join in addressing these concerns. 🌐👥
Once the expert panel is set up, they'll dive into the facts and legal matters to make a ruling. ⚖️🔍 Ji believes that even with U.S. arguments about climate change, it's unlikely to comply with WTO rules in this case. 🤔🚫
Stay tuned, folks! This could shake up the global EV scene and impact how countries collaborate on green initiatives. 🌟🌿
Reference(s):
China requests WTO expert panel on U.S. EV subsidies dispute
cgtn.com
