China has accused Washington of using ‘discriminatory subsidies’ to exclude its goods from the US, as it launched dispute settlement proceedings against the United States at the World Trade Organization (WTO).
Beijing has launched the complaint to safeguard its interests, particularly in the electric vehicle industry, the Chinese permanent mission to the WTO said on Tuesday.
China said it was contesting “discriminatory subsidies in nature” under the US Inflation Reduction Act that it said resulted in the exclusion of goods from China and other WTO countries.
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“Under the disguise of responding to climate change, reducing carbon emission and protecting environment, [these subsidies] are in fact contingent upon the purchase and use of goods from the United States, or imported from certain particular regions,” the Chinese mission said.
In Beijing, a spokesperson for China’s Ministry of Commerce said it urged Washington to “promptly correct discriminatory industrial policies, and maintain the stability of the global industrial and supply chains for new energy vehicles”.
There was no immediate response from the Office of the US Trade Representative in Washington to a request for comment. There was no immediate comment from the WTO.
- Reuters with additional editing by Sean O’Meara
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