The conflict arose from the United States Inflation Reduction Act which prohibits local producers from accessing fiscal benefits Yeah certain components of the product They were manufactured by companies from China, North Korea, Iran or Russia. From the Chinese government, they seek to challenge this decision to safeguard your interests in the sector of electric vehicles.
China vs the United States: the trade conflict
The countries that are part of the WTO, based in Geneva, have the power to file complaints about the business practices of other partners and seek compensation through the process of Dispute resolution. In this case, China is challenging subsidies that it considers “discriminatory in nature“after the latest announcements of USA.
It is that the government of president joe biden established the Inflation Reduction Law in 2022, which is part of the North American climate legislation. According to this, American buyers They will not be eligible for tax deductions of between US$3,750 and US$7,500 if the key mineralsor other battery components, were manufactured by companies from China, Russia, North Korea, or Iran.
According to the complaining country, this measure gave rise to the exclusion of goods from Chinese territory, which affects its interests in the electric vehicle sector. “Under the guise of responding to climate change, reducing carbon emissions and protecting the environment, these subsidies are in fact contingent to the purchase and use of goods originating from the United States, or imported from certain specific regions“said the Chinese mission.
From Beijing, a spokesperson for the Chinese Ministry of Commerce said they were urging Washington to “quickly correct discriminatory industrial policies and maintain the stability of global industrial and supply chains of new energy vehicles“At the moment, there was no immediate response from the Office of the United States Trade Representative in Washington or statements on the case from the WTO.
China’s blockade
The problem regarding subsidies from the United States and the electric vehicle sector is included in a technological battle between both countries. It’s just that, in the last few days, they met new measures by the Asian giant to reduce the number of US microprocessors – from companies Intel and AMD – used in China.
Initially, the ban runs for computers and government services. They will also seek to leave aside the operating system Microsoft Windows and database software manufactured abroad, in order to favor national options.
joe-biden.jpg
The latest rules, revealed by the Ministry of Finance and the Ministry of Industry and Information Technology (MIIT)represent a certain step by China to replace foreign technology with national products. This reflects the measures taken in the United States, while Tensions between the two countries increase.
In line with the new regulation, the state testing agency, the Information Technology Security Assessment Center from China, published a list of processors and operating systems “safe and reliable”, which can be used by government companies. All of them They belong to Chinese companies.
Beijing’s entire procurement revamp is part of a national strategy for technological autarky in the military, government and state sectors. This program is known such as xinchuang or “IT application innovation.” “These are the first clear, detailed and nationwide instructions for the promotion of xinchuang,” said a local government official managing the replacement of computer systems.
Furthermore, since the State Assets Administration and Supervision Commission They expressed that the State companies will complete a technological transition to national suppliers by 2027. Since last year, state groups have been required to report quarterly to the government on their progress in modernizing their IT systems, although some foreign technology will be allowed to remain.
From the other side, in Washingtonsanctions were imposed on a growing number of Chinese companies on national security grounds – most notably the TikTok scandal – and was legislated to encourage the production of more technology in the United States. These measures include blocking exports of advanced chips and related tools to China.
Source: Ambito
