(Yicai) March 27 -- China filed a complaint with the World Trade Organization over the new electric vehicle subsidy policy proposed by the United States.

The complaint was filed to safeguard the interests of Chinese new energy vehicle companies and maintain a fair competition environment in the global NEV market, the spokesperson of China’s Minister of Commerce announced on the ministry’s website yesterday.

According to the US Inflation Reduction Act, carmakers can obtain subsidies only if their EVs are produced in specific regions, which exclude China and other WTO members, the spokesperson noted, adding that this is a discriminatory subsidy policy that distorts fair competition, seriously disrupt the global NEV supply chain, and violates WTO rules, such as national and most-favored-nation treatments.

The discriminatory subsidy measure requires localized production to substitute imports, which is against the fundamental laws of the market economy and undermines fair competition in the global NEV industry, Sun Xiaohong, secretary general of the automobile branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told Yicai.

Moreover, the policy impairs the safety and stability of the NEV supply chain and significantly damages the interests of consumers, Sun pointed out.

Filing the complaint is not only to defend China’s legitimate rights and interests but also to keep the fair competition environment in the global NEV market and maintain a stable supply chain, Sun added.

Editors: Tang Shihua, Futura Costaglione