China says America’s EV incentives are illegal and violate WTO rules

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China has lodged a complaint with the World Trade Organization (WTO) against the electric vehicle (EV) incentives introduced by the United States under the Inflation Reduction Act (IRA). These incentives, effectively barring Chinese automakers from directly selling EVs in the U.S., prompted China to take action to safeguard the interests of its new energy vehicle (NEV) companies and ensure fair competition within the global NEV industry. According to a question-and-answer session released by China’s Ministry of Commerce, this move seeks to address concerns over subsidies for NEVs outlined in the US IRA through the WTO’s dispute settlement mechanism.

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