China says U.S. EV subsidy provisions 'suspected of violating WTO rules'

The electric vehicle (EV) subsidy provisions in the U.S. Inflation Reduction Act are discriminatory and suspected of violating the World Trade Organization (WTO) rules, the Chinese Ministry of Commerce (MOC) said Thursday.

The relevant provisions, granting tax credits for EVs on the condition of final assembly in North America, discriminate against other similar imported products and are suspected of violating the WTO principles of the most-favored-nation treatment and national treatment, MOC spokesperson Shu Jueting told a press conference.

Shu said China is concerned about the U.S. move, and also takes note that some other WTO members have also expressed serious concerns over it.

As a WTO member, the United States should implement relevant investment policies in a manner consistent with the WTO rules and safeguard a trade order that upholds fair competition, Shu said.

China will continue to follow and evaluate the subsequent implementation of the act and take measures to safeguard the country's legitimate rights and interests when necessary, the MOC spokesperson added.