China will challenge the US Anti-Inflation Act at the World Trade Organization, arguing that all it wants is a level playing field in the electric car market. By law, electric vehicles must meet certain requirements to qualify for the $7,500 subsidy.
Earlier, US President Joe Biden asked the Commerce Department to investigate whether Chinese-made cars pose a threat to US national security.
Beijing argues that the law has put Chinese goods on an unequal playing field. The complainant also added that he is launching this legal challenge to protect his interests in the electric vehicle industry.
“Under the guise of responding to climate change, reducing carbon emissions, and protecting the environment, these subsidies actually depend on the purchase and use of goods from the United States or imported from certain regions.”– said the Chinese representatives.
China's Ministry of Commerce said the law created a “discriminatory policy” that “distorts fair competition.” The plaintiffs also claim that America's policies violate WTO principles and disrupt industrial and supply chains. China also urged the US to “respect the development trend of the global new electric vehicle industry and correct its policies.”