China denies using EV subsidies barred by WTO

China’s Foreign Ministry spokesperson, Mao Ning, refuted allegations on Thursday that the country uses subsidies for electric vehicles (EVs) that violate World Trade Organisation (WTO) regulations, as reported by Reuters.

This statement comes in response to recent comments by US President Joe Biden expressing concerns about Chinese EV subsidies potentially harming American automakers.

Mao’s comments directly addressed remarks made by President Biden, who accused China of employing subsidies to flood the US market with electric vehicles. These concerns have also been echoed by other members of the US administration.

China’s new energy sector is driven by competitive products, not government subsidies, Mao said, adding that subsidies alone cannot create industrial competitiveness. China’s subsidies are not prohibited by WTO regulations.

Mao further downplayed the notion of a Chinese EV flood in the US market. ” Last year, China exported only 13,000 electric vehicles to the United States. How can they flood into the US market?” he questioned.

Biden has previously threatened to increase tariffs on various Chinese sectors, including potentially quadrupling import duties on Chinese EVs to over 100 per cent. Additionally, he has proposed doubling semiconductor tariffs to 50 per cent.