China: "It's Illegal to Remove Our Electric Cars"

Written by Henrik Rothen

Dec.11 - 2023 7:38 PM CET

Photo: Geely
Photo: Geely
"It's Illegal to Remove Our Electric Cars".

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The Chinese government has once again expressed dissatisfaction with the exclusion of its car brands from primarily the American market, labeling it a violation of international trade law. Starting from the new year, owning an electric vehicle (EV) in the USA will become slightly more challenging, especially for those seeking public support in the form of tax rebates.

From January 1st, the U.S. government will remove a tax rebate for all new electric vehicles whose batteries contain components from China. The Biden administration is set to tighten these rules even further the following year.

This move has led to complaints from the Chinese, as reported by Automotive News. They claim that President Joe Biden's new law violates several international trade laws.

A Chinese government spokesperson, He Yadong, criticized the U.S. policy, stating,

Targeting Chinese companies by excluding their products from state subsidies is a typical non-market-oriented policy."

He added that these "glass-like barriers" do more harm than good in the development of the electric vehicle and the broader industry.

The new rules have already had implications for the American automotive industry. For instance, Ford anticipates that government support for the Mustang Mach-E will cease due to these new regulations.

However, the Chinese discontent is not solely directed at the Americans regarding electric vehicles. China is also greatly disappointed with the European Union's intention to investigate whether the Chinese government is illegally supporting its automotive industry with state aid.

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