The Chinese government has announced that it has filed a lawsuit with the World Trade Organization (WTO), claiming that the tax incentives introduced by the Biden administration in the United States for EVs (electric vehicles) are distorting fair competition.
There is a possibility that the conflict between the US and China over advanced technology will become even more intense.
The Biden administration in the United States has introduced tax incentives for EVs and other vehicles based on the Inflation Control Act that was enacted a year ago, but the incentives are targeted at vehicles that are ultimately assembled in North America.
In addition, there are requirements regarding the sources of materials and raw materials for batteries used in EVs, etc., and it has been pointed out that there is an aim to exclude Chinese companies from the supply chain.
China's Ministry of Commerce announced on the night of the 26th that it has filed a lawsuit with the World Trade Organization regarding this preferential treatment, claiming that it excludes products from China and other countries and distorts fair competition.
China's Ministry of Commerce commented, ``The US measure deeply disrupts global supply chains, violates WTO rules, and we firmly oppose it.''
There is an ongoing dispute between the United States and China over cutting-edge technologies such as semiconductors, and this lawsuit may further intensify the conflict.