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China initiates WTO dispute regarding U.S. tax credits for electric vehicles, renewable energy

China claims the U.S. credits at issue are dependent on the use of domestic over imported goods.

March 27, 2024

China has requested World Trade Organization (WTO) dispute consultations with the United States regarding certain tax credits under the U.S. “Inflation Reduction Act of 2022” to promote the production of electric vehicles and renewable energy projects. The request was circulated to WTO members on March 28, 2024.

According to today’s WTO release, China claims the U.S. credits at issue are dependent on the use of domestic over imported goods or discriminate against goods of Chinese origin in violation of provisions under the General Agreement on Tariffs and Trade 1994, the Agreement on Trade-Related Investment Measures, and the Agreement on Subsidies and Countervailing Measures.

      For more information, contact a professional with KPMG Trade & Customs services:

      Doug Zuvich
      Partner and Global Practice Leader
      E: dzuvich@kpmg.com
      John L. McLoughlin
      Principal and East Coast Leader
      E: jlmcloughlin@kpmg.com
      Andy Siciliano
      Partner and National Practice Leader
      E: asiciliano@kpmg.com
      Steve Brotherton
      Principal and Global Export and Sanctions Leader
      E: sbrotherton@kpmg.com
      Luis (Lou) Abad
      Principal, Washington National Tax
      E: labad@kpmg.com
      Irina Vaysfeld
      Principal
      E: ivaysfeld@kpmg.com
      Amie Ahanchian
      Principal
      E: aahanchian@kpmg.com
      Christopher Young
      Principal
      E: christopheryoung@kpmg.com
      Gisele Belotto
      Principal
      E: gbelotto@kpmg.com

      George Zaharatos
      Principal
      E: gzaharatos@kpmg.com

      Andy Doornaert
      Managing Director
      E: adoornaert@kpmg.com
      Jessica Libby
      Principal
      E: jlibby@kpmg.com
      John Anderson
      Managing Director
      E: johneanderson@kpmg.com
      Jenna Leigh Glass
      Managing Director
      E: jennaleighglass@kpmg.com

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