The China Chamber of Commerce for Import and Export of Machinery and Electronic Products, representing China's automobile industry, has voiced strong opposition to the U.S. Inflation Reduction Act (IRA). The chamber expressed serious dissatisfaction with the IRA's measures, which they claim unfairly target China's new energy vehicle (NEV) sector.
In a recent statement, the chamber emphasized its commitment to protecting the legitimate rights and interests of China's NEV industry. They called on the United States to adhere to World Trade Organization (WTO) rules, eliminate discriminatory subsidy policies, and cease unilateral trade practices.
Since the IRA was enacted on August 16, 2022, tensions have escalated. On March 26 this year, China filed a complaint with the WTO dispute settlement mechanism regarding U.S. subsidies for NEVs under the IRA. With no resolution reached through consultations, China has now requested the WTO to establish an expert panel to examine the matter.
The chamber highlighted that the NEV subsidies in the IRA disrupt fair competition within the global new energy automobile industry. They argue that these measures damage the stability of the international industrial and supply chains, undermine the global economic recovery, and hinder efforts to address climate change.
China's NEV industry has made significant strides in open competition and has contributed to the global transition towards greener energy solutions. The chamber criticized the U.S. for engaging in protectionist tactics and applying double standards, which they believe not only impede China's NEV advancements but also weaken global cooperation on sustainability and climate initiatives.
Furthermore, the chamber pointed out that the discriminatory subsidy measures under the IRA are designed to boost the U.S. NEV industrial chain by undermining competitors from specific countries. This approach, they argue, has adversely affected the U.S. electric vehicle market by reducing supply and eroding consumer confidence, becoming a major obstacle to achieving electrification goals.
\"After the IRA took effect, about 80 percent of NEV models on the market did not meet the subsidy requirements, which not only affected the launch of new cars but also hit consumer confidence,\" stated Sun Xiaohong, secretary general of the automotive internationalization professional committee under the chamber.
Reference(s):
China auto sector opposes measures under U.S. Inflation Reduction Act
cgtn.com
