1. China disputes US subsidies for electric cars and batteries at the World Trade Organization.
2. US Treasury Secretary Janet Yellen raises concerns about China’s increased production in green energy.
3. The outcome of the WTO trade case may result in a prolonged legal void due to the lack of a functioning appeals bench.
China has initiated dispute settlement proceedings against the United States at the World Trade Organization, arguing against “discriminatory subsidies” under the U.S. Inflation Reduction Act that exclude goods from China and other WTO countries. The IRA provides tax credits to consumers buying electric vehicles and companies producing renewable energy. U.S. Trade Representative Katherine Tai stated that Washington was reviewing China’s request for WTO consultations. Treasury Secretary Janet Yellen also expressed concerns about China’s increased production in renewable energy sectors and its impact on global prices and American firms. The U.S. and China have strained trade relations, with China dominating in batteries for electric vehicles and having a rapidly expanding auto industry.
The outcome of the trade case filed by China remains uncertain, as WTO rulings can take time and the U.S. opposes the current appeals system. China’s actions may indicate a strategy to resolve the dispute without escalating conflict. The trade dispute reflects the evolving power dynamics between the U.S. and China in the global economy, with China emerging as a strong competitor in renewable energy and electric vehicles. It underscores the challenges and complexities of international trade relations, particularly in the context of economic competition and geopolitical tensions.