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Interview: Discriminatory US subsidies disrupt NEV supply chain (expert)

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BEIJING, March 28 (Xinhua) — U.S. subsidies for new energy vehicles (NEVs) are discriminatory and will seriously disrupt the global supply chain, a trade expert told Xinhua.

Tu inflation. China has initiated dispute settlement proceedings on this issue at the World Trade Organization (WTO).

Explaining why these measures are discriminatory, Tu said that for automakers to benefit from the corresponding tax credits, their production must take place in North America and a certain proportion of the key minerals in electric batteries must come from United States or signatory countries. free trade agreements with it.

In particular, if key minerals come from several specific countries, including China, production will not be able to benefit from subsidies, Tu added.

The veteran trade expert believes that the US measures are not aimed at promoting the green transition, as the country claims, but at preventing vehicles from other countries, particularly China, from entering the US market.

Such subsidies violate the WTO’s principle of national treatment, Tu said.

It is not only Chinese companies that are suffering, but also those in Europe, Japan, the Republic of Korea and even the United States. Tu said the number of pure and plug-in electric vehicle models eligible for subsidies would fall from 25 in 2023 to 13.

“The U.S. government has repeatedly asserted that it has no intention of dissociating itself from China, but simply wants to reduce risks. However, discriminatory policies explicitly directed against China in the U.S. Reduction Act of inflation clearly violate its public commitment and will increase the risk of failure in the response to climate change, not only for the United States but for the world as a whole,” Tu said.

The United States should correct its discriminatory policies from the perspective of the common interests of the global response to climate change, compliance with WTO rules and the stability of China-US relations, Tu said.

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