The Chinese Ministry of Commerce has voiced strong opposition to the provisions in the United States’ Inflation Reduction Act, specifically targeting the policies regarding electric vehicles (EVs). According to spokesperson He Yadong, the Act’s stipulations, which exclude Chinese EVs from receiving full tax breaks in the U.S., represent discriminatory and ‘non-market policies and practices.’
During a regular press conference on Thursday, He Yadong emphasized that these provisions contravene the foundational principles of the World Trade Organization (WTO). The spokesperson emphasized that the U.S.’s subsidy policy not only violates WTO rules but also crucially disrupts the flow of international trade and investment. This, in turn, poses a threat to the stability of global industrial and supply chains.
He Yadong mentioned that various WTO members, including China, have raised significant concerns about the U.S. policy. These apprehensions were conveyed both at the WTO Council for Trade in Goods and on other occasions, reflecting a broader international unease with the U.S.’s approach.
The spokesperson underscored the importance of the EV sector as a leading-edge industry. He stressed that healthy competition is crucial for technological advancement. The U.S.’s approach, which He describes as creating artificial trade barriers, stifles fair competition. This not only hampers the evolution of EV technology but also negatively impacts the broader EV industry.
Urging the U.S. to respect market dynamics and adhere to WTO rules, He Yadong called for an overhaul of America’s biased subsidies, advocating for a balanced, fair, and non-prejudicial business climate.
Concluding, the spokesperson stated that China remains committed to safeguarding its interests and rights. The nation is set to closely monitor how the U.S. enforces these policies and will take appropriate measures in response.
This dispute marks a negative impact on U.S.-China trade relations. The implications of the U.S. Inflation Reduction Act on the international trade landscape, especially in the dynamic EV market, are drawing keen global attention and debate.
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