Late last month China asked the World Trade Organization to investigate the United States over unfair subsidies on renewable energy products and EVs as part of the Inflation Reduction Act. The Chinese claim that these subsidies “discriminate against goods of Chinese origin.”
Guess what?
They do, and tough crapola.
What?
The taste of your own medicine isn’t to your liking?
The subsidies in question focus on electric vehicles and the IRA’s Investment Tax Credit (ITC) and Production Tax Credit (PTC).
This was China’s statement:
“Subsidies that violate the WTO Agreement, including subsidies that are contingent upon the use of domestic over imported goods or that otherwise discriminate against imported goods, remain prohibited and threaten to undermine international cooperation on reducing and mitigating the effects of climate change.”
You ought to know. Practically your entire trade policy favors domestic producers.
China made the request to the WTO just days after two US senators called on President Biden to lift  a tariff exemption on bifacial modules. Bifacial modules account for almost 90% of PV module imports.
I’m sure it was just coincidence.
To be honest, I have no idea if the provisions in the IRA violate the General Agreement on Tariffs and Trade 1994, the Agreement on Trade-Related Investment Measures and the Agreement on Subsidies and Countervailing Measures as the Chinese claim.
Quite frankly, I don’t care.
When the Chinese start playing by international rules, then they’ll have a beef. Until then, as you sow, so shall you reap.
#chinatrade #wto #inflationreductionact #tariffs #electricvehicles #solarpanels