The provisions of the United States’ “Inflation Reduction Act” that bar Chinese electric vehicles (EVs) from qualifying for full tax breaks are discriminatory and “non-market policies and practices,” a spokesperson for China’s Ministry of Commerce said on Thursday.
The discriminatory U.S. subsidy policy violates the basic principles of the World Trade Organization (WTO), seriously disrupts international trade and investment, and undermines the stability of global industrial and supply chains, spokesperson He Yadong said at a regular press conference.
Many WTO members, including China, have expressed serious concerns over the policy to the WTO Council for Trade in Goods and on various occasions, He said.
EVs are part of a technology-leading industry, and adequate competition is key to technological progress, He said. The United States has artificially established trade barriers to impede fair competition, which is harmful to the development of EV technology and the EV industry.
The U.S. should respect market principles, abide strictly by WTO rules, redress its erroneous discriminatory subsidies, and create a fair, just and non-discriminatory business environment, He said.
China will continue to assess the implementation of the U.S. measures and take necessary measures to safeguard its legitimate rights and interests, the spokesperson said.
