China is Unhappy with the Inflation Reduction Act and Has Complained to the WTO
Among many other things, the Inflation Reduction Act changed the way EV tax credits work in the United States. With an eye on reducing America’s dependence on Chinese batteries and materials, the Act incentivizes automakers to source materials from free-trade-compliant countries and build EVs in North America. Now, China is expressing its unhappiness with the legislation by raising a dispute with the World Trade Organization.
The Chinese Ministry of Commerce claimed the Inflation Reduction Act is “discriminatory” and said it has “seriously distorted” supply chains. At the same time, the U.S. is making similar claims against China, saying the country has used unfair policies to manipulate the global market in its favor.
Legal experts say this case might not be so airtight for China, noting that the U.S. will mount a vigorous defense. That said, the Inflation Reduction Act apparently does run afoul of WTO rules, which has already been pointed out by the EU.
U.S. politicians of all sorts have expressed distrust of China, and no one appears ready to go soft on the Asian giant’s EVs. The country’s electric vehicle industry has grown rapidly in recent years, as government subsidies and other incentives have driven research and development of new models.
While BYD, China’s largest EV maker, has said it would not come to the U.S., others might. Additionally, Chinese EVs are expanding their reach into Mexico, and some expect other brands to reach the U.S. by 2025 or shortly after. That said, there is still the matter of Chinese tariffs, which can add thousands to the price of a new EV as it enters the United States.
[Image: Tada Images via Shutterstock]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
More by Chris Teague
Latest Car Reviews
Read moreLatest Product Reviews
Read moreRecent Comments
- CKNSLS Sierra SLT I am thankful for those who have served/and serve this country to protect our freedoms.The "usual suspects" are quiet.......
- KevinB Hemmings ran an article on the 1960 Cadillac Series 62 grille and its complexity. It took a lot of work.https://www.hemmings.com/stories/article/1960-cadillac-series-62
- Kwik_Shift_Pro4X Now going for $7000.
- SCE to AUX Working on a deck project. Also replaced the A/C compressor in a Subaru.
- A I have a project 87 or 88, don't have the year in front of me. Tranny was starting to slip when my daughter drove it, original tranny so it's likely the rubber seals are failing. I had a backup tranny so i disassembled it to see what kind of shape it was in. I did see it needs all the rubber seals, hard parts are all good. So a basic rebuild kit should fix it. The reason she stopped driving it was because she heard a slight engine knock. So both engine and tranny likely will need a rebuild. We are from Wisconsin but only rarely driven in snow, underside looks solid and a bit of surface rust here and there. Some fading from the sun.She has decided to let it go now that ahe is a mother and no air bags. This car is fun to drive but at my age i don't need another project. Will send pictures if anyone is interested, I will let it go at junk price, just would rather see it fixed and driven then crushed and melted down.Contact info thewoz69@gmail.com
Comments
Join the conversation
In a communist dictatorship, there isn't much export activity that the government isn't aware of. That being the case, if the PRC wanted to, they could cut the flow of fentanyl down to a trickle. Since that isn't happening, I therefore assume Xi Jinping doesn't want it cut. China needs to feel the consequences for knowingly poisoning other countries' citizens.
Interesting. Oil wealthy gulf nations, Russia, January 6 traitors, and now China all hate the Inflation Reduction Act. But who does like the IRA?
- People on prescription drugs, because prices are coming down, starting with insulin at $35/month
- Companies that run on electricity, because generation supply is increasing rapidly
- People who like to have jobs, because of all the factories being built to make EVs, solar panels and batteries.
- American consumers, who like getting 30% off the price of sustainable energy from solar
- People who like getting $7,500 of their taxes back when they buy an efficient car built in America
- People who like that inflation is now down to 2.5% in the US
- In short, Americans.