A World Trade Organization (WTO) panel ruled on January 30 that the US’s clean energy subsidies under the Inflation Reduction Act (IRA) violate global trade rules and should be removed.
Released in August 2022, the IRA stated that it will only provide subsidies for clean energy projects that use domestic steel, iron and other products. China finds those measures discriminatory and inconsistent with WTO rules.
The panel supported China’s complaint. According to the report on the WTO website, it rejected the US’s argument that the measures were “necessary for the protection of public morals,” saying that the US treats Chinese products worse than similar products made in the US, which breaks the WTO rules. The panel recommended that the US remove the measures by October 1, 2026.
China’s Ministry of Commerce welcomed and appreciated the “objective and impartial” ruling, saying China has always been a firm defender of WTO rules and a steadfast upholder of the international economic and trade order, State media Xinhua reported.
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