China has escalated its trade dispute with the U.S. over electric vehicle (EV) subsidies, requesting a formal WTO expert panel to investigate claims that American policies violate global trade rules. The move targets the U.S. Inflation Reduction Act (IRA), which Beijing says unfairly favors domestic manufacturers and sidelines products from WTO members like China.
Why It Matters
The IRA – signed in 2022 – allocates $369 billion for climate initiatives, but critics argue its 'Made in America' requirements create trade barriers. A Chinese Commerce Ministry spokesperson called the rules 'discriminatory,' saying they 'artificially inflate green transition costs' and undermine global climate cooperation.
Timeline of Tensions
March 2023: China first requested WTO consultations over IRA tax credits
60-day negotiation window expired without resolution
New expert panel could lead to binding WTO ruling
Expert Take
Ji Wenhua, a trade law professor, says U.S. subsidies act as 'import replacements' that disrupt EV supply chains and weaken multilateral trade systems. 'This isn’t just about China,' he notes. 'It’s about defending fair rules for all nations tackling climate change.'
What’s Next
If established, the WTO panel will examine whether IRA subsidies breach international agreements. With the U.S. unlikely to back down, this could become a landmark case shaping how countries balance green policies with trade fairness.
NewspaperAmigo – Your Global News Buddy 
The move targets the U.S. Inflation Reduction Act (IRA), which Beijing says unfairly favors domestic manufacturers and sidelines products from WTO members like China.
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