The United States on Friday blocked China’s request for an international dispute settlement panel to decide whether key provisions of President Joe Biden’s Inflation Reduction Act violate global trade rules. It also accused China of trade “hypocrisy” because of Beijing’s own massive support for clean energy projects.
“In short, it is hypocritical for China to target the U.S. measures in this dispute while failing to address its industrial targeting of clean energy sectors and its use of non-market policies and practices that are detrimental to all members,” the U.S. delegate said at a meeting of the World Trade Organization’s Dispute Settlement Body. “China’s approach has created an untenable situation for governments seeking to meet their climate, resiliency, and other legitimate policy objectives.”
Beijing can make a second request for a panel, which the United States will not be able to block, at the WTO’s next Dispute Settlement Body meeting Sept. 23. It could also request a special DSB meeting earlier, if it prefers not to wait.
While it is fairly routine for countries to block initial panel requests, the United States delivered a long defense during Friday’s meeting of the subsidies provided for electric vehicles and other clean energy priorities under IRA.
