China Initiates WTO Dispute Over U.S. Electric Vehicle Subsidies

China has initiated dispute settlement proceedings against the United States at the World Trade Organization, contesting "discriminatory subsidies" under the U.S. Inflation Reduction Act that it claims exclude goods from China and other WTO countries. The law provides tax credits for electric vehicles and renewable energy, but China argues that these subsidies are contingent upon the purchase of goods from the U.S. or certain regions. The U.S. Trade Representative is reviewing China's request for WTO consultations, while China urges Washington to correct discriminatory industrial policies and maintain global stability in the new energy vehicle supply chain. If the WTO rules in favor of China, the U.S. could appeal, but the WTO's top appeals bench has been non-functional since December 2019 due to U.S. opposition to judge appointments.