China has just sued the United States to the World Trade Organization (WTO) because it thinks that the US inflation decrease law threatens the global electric car industry.
President Joe Biden signed through the Ira law
>> Will the West “take action” with Chinese electric car batteries?
On March 26, China initiated disputes against the US at the WTO to protect its interests in the electric car industry.
China said it is opposing “discrimination allowances” under the US inflation (IRA) decrease law that they think has led to the elimination of goods from China and other WTO member countries.
Error 500 (Server Error)!!1500.That’s an error.There was an error. Please try again later.That’s all we know.
One of the three important contents of Ira is to provide tax and funding credit to encourage green energy projects. Up to now, 83 clean energy equipment factories such as wind turbines and solar panels, crazy car batteries have been leveled 270 billion USD to enhance productivity.
According to Washington’s explanation, Ira is associated with the target of anti -climate change. President Biden also pledged to make all efforts to achieve net emissions equal to “0” by 2050.
The Chinese delegation at the WTO said that: under the cover is response to climate change, reducing carbon emissions and environmental protection, these allowances are used in buying and using goods from the US or imported from a number of specific areas.
CNBC quoted Chinese trade officials: “We are conducting procedural procedures to protect the legitimate interests of the Chinese electric car industry and maintain a fair competitive playground for the global market.”
The US electric car industry is receiving thousands of dollars on each one
>> The new Chinese move threatens the global technology supply chain
China and the US – now no one believes anyone, they accuse each other with many similar things. US trade representative Katherine Tai also said that China uses “unfair and non -market policies”.
Although not directly, Ira’s incentives attract investors in particular and renewable energy in general to converge to the United States to enjoy financial allowances. Each electric vehicle assembled in the US can be supported more than 7,500 USD.
Experts also analyze IRA more detailed, to ensure eligibility to enjoy allowances, electric vehicle manufacturers must meet the important mineral percentage in the power battery must be originated from the US, or countries with free trade agreements (FTA) with the US.
Besides encouraging emissions, it can be said that this law will create a narrow supply chain in electric vehicles, of which the US is located in the center. China, the European Union, Canada, … also developed the same policy. This certainly brings challenges to small countries, in developing the clean energy industry in general and electric vehicles and “green” traffic in particular.
In the context that many developing countries have no strengths in capital and technology, forced to export resources to large countries to participate in the supply chain. Potential startups of electric vehicles, electric car batteries have to rush in the US, seeking ways to produce and sell goods in the US.
