Interview: U.S. discriminatory subsidies disrupt NEV supply chain: expert
Time:2024-05-22 10:11:15 Source:opinionsViews(143)
BEIJING, March 28 (Xinhua) -- The United States' subsidies for new energy vehicles (NEVs) are discriminatory and will seriously disrupt the global supply chain, a trade expert has told Xinhua.
Tu Xinquan, head of the China Institute for WTO Studies of the University of International Business and Economics, made the remarks in an interview on the subsidies under the U.S. Inflation Reduction Act. China has initiated dispute settlement proceedings on the matter at the World Trade Organization (WTO).
Elaborating on why the measures are discriminatory, Tu said that for carmakers to obtain the related tax credits, their production must take place in North America, and a certain proportion of key minerals in power batteries must come from the United States or countries that have signed free trade agreements with it.
In particular, if the key minerals come from several specific countries, including China, the production will not be able to benefit from the subsidies, Tu added.
The seasoned trade expert believes the U.S. measures are not designed to promote the green transition, as the country claims, but to block vehicles from other countries, especially China, from entering the U.S. market.
Such subsidies violate the national treatment principle of the WTO, Tu said.
It is not only Chinese companies that bear the brunt, but also those from the Europe, Japan, the Republic of Korea and even the United States itself. Tu said the number of pure and plug-in electric vehicle models eligible for the subsidies will drop from 25 in 2023 to 13.
"The U.S. government has repeatedly claimed that it has no intention of decoupling from China, but only wants de-risking. However, the discriminatory policies explicitly aimed at China in the U.S. Inflation Reduction Act obviously violate its public commitment and will increase the risk of failure on climate change response, not only for the United States but the globe at large," Tu said.
The United States should correct the discriminatory policies from the perspective of the common interests of the global response to climate change, compliance with the WTO rules, and the stability of China-U.S. relations, Tu said.
You may also like
- Juneteenth proclaimed state holiday again in Alabama, after bill to make it permanent falters
- 100 days since Hamas attacked Israel, triggering war in Gaza
- Person seriously injured, another dead after Browns Bay assault
- London police say chemical attacker presumed dead
- Trump visits Minnesota after son Barron's Florida high school graduation
- Judge declines to delay Trump hush money trial over publicity complaints
- Media minister Melissa Lee says interviews would have been 'boring'
- Ruby Franke: Parenting advice YouTuber given maximum sentence for child abuse
- Iran's nuclear policy unlikely to change even after president's death