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China Seeks WTO Consultations with US Over EV Tax Credits in Inflation Reduction Act Dispute

China has requested dispute consultations with the US at the World Trade Organisation (WTO) regarding tax credits introduced under the US Inflation Reduction Act (IRA) for electric vehicles (EVs) and renewable energy projects. The request, dated March 26 and circulated to WTO members, alleges that the tax credits favour domestic goods over imports or discriminate against products of Chinese origin. The US Trade Representative, Katherine Tai, stated that the US is reviewing the consultation request and is committed to addressing the global climate crisis and investing in U.S. economic competitiveness. The parties have 60 days to resolve the dispute, after which they may request adjudication by a panel.

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