Geneva (EFE).- The WTO dispute settlement panel ruled in China’s favor regarding the United States’ tax credits for electric vehicle production and renewable energy projects, requesting that the US withdraw the credits by Oct. 1.
According to details of the case published on the WTO website, the panel upheld all of China’s claims. The panel considered the measure to be incompatible with the General Agreement on Tariffs and Trade (GATT) of 1994, the Agreement on Trade-Related Investment Measures (TRIMS), and the Agreement on Subsidies and Countervailing Measures (SCM).
The panel also concluded that the US failed to demonstrate that these measures were necessary to protect US public morals.
China filed the dispute with the WTO in Mar. 2024, alleging that certain US credits under the Inflation Reduction Act discriminated against products of Chinese origin by not complying with international trade regulations.
The credits were intended to incentivize the domestic manufacturing of electric vehicles and components, such as batteries, as well as solar panels, wind turbines, and other structures for developing renewable energy sources.
China argued that these credits constituted subsidies that favored domestic US production, thereby distorting trade and displacing foreign suppliers.
Initially, China’s claim also included tax credits for purchasing electric vehicles in the US market, however, the Asian country stopped including them in the dispute after Washington eliminated these subsidies in Jul. 2025 through the «One Big Beautiful Bill Act.» EFE
abc/dgp
