China’s automobile industry strongly opposes measures in the US Inflation Reduction Act.

China Chamber of Commerce Opposes US Legislation Impacting NEV Industry

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products, representing China’s automobile sector, has voiced strong discontent and staunch resistance towards measures implemented by the US Inflation Reduction Act (IRA).

Upholding Rights and Seeking WTO Resolution

The chamber stands firmly for the lawful interests of China’s new energy vehicle (NEV) industry and urges the US to adhere strictly to World Trade Organization regulations. It demands an immediate rectification of discriminatory subsidy policies, denouncing unilateral actions and trade bullying tactics.

Legal Actions Taken

China lodged a complaint with the WTO on March 26 concerning NEV subsidies granted under the IRA. Despite unsuccessful negotiations with the US, China has now called for the establishment of a WTO expert panel.

Support for Government Initiatives

The chamber shows solidarity with the government’s WTO plea to safeguard the lawful interests of China’s NEV sector.

Impact on Global Trade Environment

Highlighting the detrimental effects of the IRA, the chamber emphasizes that the subsidy measures disrupt fair market competition, jeopardize industrial and supply chain stability, and hinder global economic resurgence.

China’s NEV Industry Progress and Contributions

The chamber underscores the advancements of China’s NEV industry in fostering global supply diversity and combatting climate change. It criticizes US protectionism as counterproductive to both domestic and international industrial growth.

Consequences of Discriminatory Measures

Labeling the IRA’s NEV subsidies as discriminatory, the chamber asserts that they aim to bolster the US NEV supply chain at the expense of other nations. The chamber notes a decline in the US electric vehicle market post-IRA implementation, hindering electrification goals.

Market Impact and Consumer Confidence

Secretary General Sun Xiaohong of the chamber’s automotive internationalization committee highlights that 80% of NEV models failed to meet subsidy criteria post-IRA, adversely affecting new car launches and consumer trust.