This past May, the Biden Administration raised U.S. tariffs on imported vehicles and certain EV battery raw materials coming from China amid national security and competitive concerns. However, before that happened, China was already at odds with the U.S. over stipulations in the Inflation Reduction Act (IRA), which mandates that EVs can only contain certain percentages of materials stemming from that country in order to be eligible for federal incentives. That battle isn’t quite over yet, either, it seems.
Back in March, China sued the U.S. at the World Trade Organization (WTO), claiming that IRA incentives are “discriminatory” and have “seriously distorted” the global supply chain, as those rules discourage the use of raw EV battery materials sourced from places like China. Now, according to Reuters, Chinese officials have asked the WTO to create a panel of experts to help settle this same dispute as the two sides have thus far failed to reach any sort of middle ground.
The IRA “excludes products from WTO members such as China, artificially sets trade barriers, and pushes up the costs of green energy transition,” that country’s commerce ministry said. “We urge the U.S. to abide by WTO rules and stop abusing its industrial policies to undermine international cooperation on climate change.”
Meanwhile, Ford is betting the proverbial house on its own skunkworks EV team, which is developing a low-cost platform that is aimed directly at more affordable Chinese models. The first EV set to be underpinned by that platform will be a crossover with a price tag of around $30,000, according to CEO Jim Farley, though it may also be used in a compact EV pickup and dedicated ride sharing vehicle as well. Thus far, Farley has made it quite clear that he views Chinese EVs as a bigger threat to the company’s business than EV mandates, too.
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Comments
Nothing like getting suckered into a race for tech that most of your customers don’t even want.
Maybe, like you John, they cannot afford it. I can!
Oh, a rich 73 year old bragging about their money. Spend it now Boomer, you can’t take it with you. Still enjoying your EV powered by oil and natural gas?
China apllies high tariffs on all goods imported to their side. This is why Ford, GM, Tesla, and others have to cooperate with local Chinese companies to build and sell there. Then thry copy the impoted technology and make cheaper copies of those goods. Eventuslly tjose coopetations will fail. Tesla is already feeling tbst effect as new Chinese EVs ate as good as Tesla ans sell more. The U.S. and EU are getting back at the Chinese.
Ford owner: check your grammar!? Most of your words are missing the right descriptive connecting letters; I am a Ford owner: My vehicle is a 2008 n/a gas powered 5.4L 4wd Expedition. My tactful education was a webster’s dictionary from back.n.the day.
If China desires to gain ground: Actively do it honestly by NOT selling replicas, knock-off’s. They must create original origin’s of products, Not steal idea’s from the competition to cut corners!