WTO Panel Rules in Favor of Beijing

China-US - The US government condemned the World Trade Organization (WTO) ruling on Friday, calling it "absurd." On January 30, the WTO panel issued a ruling on China's WTO dispute case against the US Inflation Reduction Act, stating that the US measures involved violated WTO rules.

The WTO released the panel's ruling on China's WTO dispute case against the US Inflation Reduction Act. In this case, the panel ruled that the US clean energy subsidy measures violated WTO rules, rejected the US argument that the measures were for protecting US "public morals," and required the US to cancel the subsidy measures involved.

The Office of the White House Trade Representative Jamieson Greer stated in a statement that this ruling "further deepened the US long-standing doubts about the WTO's ability to regulate trade in a global environment where trade imbalances are severe and persistent."

In March 2024, China filed a complaint with the WTO regarding certain subsidies provided by the US under the Inflation Reduction Act (IRA), including tax credits for clean energy vehicles and renewable energy.

China argued that these subsidies were provided as part of former President Joe Biden's green plan, creating unfair competition. Since the Trump administration terminated the clean energy vehicle tax credit in July 2025, Beijing withdrew the allegations related to that part of the complaint, so the WTO special panel did not issue a ruling on that aspect.

The Biden administration announced a large-scale aid program in 2022 aimed at supporting companies in the energy transition sector and electric vehicles made in the US. Washington sought to counter Beijing's subsidies to its industries and launch its own green strategy.

China's Ministry of Commerce stated in July 2024 that this US law "requires products to be sourced from specific regions (such as the US) to receive subsidies" and "excludes Chinese products." The IRA is still in effect, but many of its key provisions have been amended or repealed since Trump returned to the White House last year.

Source: rfi

Original: toutiao.com/article/1855786927594506/

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