China said Tuesday that it has filed a complaint at the World Trade Organization over what it says are discriminatory requirements for American subsidies for electric vehicles.
Starting this year, U.S. car buyers are not eligible for tax credits of $3,750 to $7,500 if critical minerals or other battery components were made by Chinese, Russian, North Korean or Iranian companies. The credits are part of the 2022 Inflation Reduction Act, U.S. President Joe Biden’s signature climate legislation.
The Chinese Commerce Ministry said in a statement posted online that the U.S. formulated discriminatory subsidy policies for new energy vehicles in the name of responding to climate change.
It said the U.S. move excluded Chinese products, distorted fair competition and disrupted the global supply chain for new energy vehicles.
China is the dominant player in batteries for electric vehicles globally.
Under rules that took effect Jan. 1, only 13 of the more than 50 EVs on sale in the U.S. are eligible for the credits, down from about two dozen models that qualified in 2023.