The EU will not do it too!

The EU will not do it too! U.S. media: The European Union is evaluating whether the US electric vehicle subsidy policy violates the WTO criteria

"The European Union is evaluating whether the United States'" Inflation Act "violations of the World Trade Organization Guidelines." Bloomberg reported on the 10th that the EU Council Executive Vice Chairman and Trade Specialist East Brovskis revealed in an interview with Bloomberg that the EU is evaluating the United States recently Whether the policy of electric vehicle subsidies in the "Inflation Act" has violated the World Trade Organization (WTO) criteria for electric vehicle subsidies. East Brovskis said: "We are worried about some discriminatory factors in the" Inflation Act ". These factors put forward the requirements of local materials and local production. Therefore, we are evaluating whether it meets the requirements of the WTO's organizations. Agreement with government procurement. "Earlier, South Korea has stated that this bill in the United States is" betrayal "and will actively consider filed a lawsuit against the WTO.

According to the "Angle Act", the U.S. government will provide consumers who purchase new electric vehicles with $ 7,500 tax credits, and provide a tax credit of $ 4,000 to the domestic consumers who purchase second -hand electric vehicles. However, the subsidy rules of the Afigns to reduce the bill stipulate that the final assembly of the vehicle must be carried out in countries in the United States or a free trade agreement with the United States. The rules also require 40%of the raw materials used in electric vehicle batteries from North America, and this proportion will rise to 80%by 2027. Enterprises that are not satisfied with the above requirements can only get half of the tax credits.

Electric vehicle information map

In addition, the subsidy rules are specifically mentioned that battery components produced in China will be completely disabled since 2024, and Chinese mineral raw materials will be completely disabled since 2025.

"This approach is obviously discriminatory." The German Business Daily previously reported that the tax preferences formulated by the US President Biden for electric vehicles may violate the WTO criteria. The European Commission is preparing to take legal operations on subsidies for American electric vehicles. The European Union believes that the US government does so to make American cars more popular than cars in other countries.

"The European Union is deeply concerned about the new" potential cross -Atlantic trade barrier ", a spokesman for the European Commission, said that the current design of electric vehicle tax claims is obviously discriminatory. This means that the production of electric vehicle batteries and automobile assembly must be preferred in North America, which is very unfavorable for EU manufacturers.

In addition, the subsidy also has the risk of destroying the European Union and the United States. The European Union also hopes to promote battery production, but the way of doing this is different: As part of the "important project of European common interests", seven EU countries are subsidizing companies in the battery industry. However, the development of production capacity does not have funding for funding, and only provides support for research, development and innovation.

East Brovskis said at a video conference with US trade representative Daiqi this month that the United States may punish EU manufacturers in the new tax creditor policy of buying electric vehicles. The subsidy policy may fail and restrict the choice of American consumers.

According to Bloomberg, the issue of the United States "Angle Act" The United States -EU Trade and Technical Committee (TTC) negotiations on the United States -EU Trade and Technology Council (TTC) have a shadow. forum. European and American officials plan to meet before the end of the year.

The German automotive professional website Auto Motor Sport believes that the United States adopts the "Angle Bonus Act" aims to strengthen the American automotive industry in order to create many safe and high -paying jobs in the local area. In almost all the decisions involving similar themes before, the core intention of the Biden government is to consider the interests of the United States.

The European automotive industry also noticed that the US electric vehicle subsidy policy is forcing companies to "decompose" with the Chinese industrial chain. A German television analysis said that the US government hopes to encourage consumers to buy electric vehicles, but the subsidy plan has a huge problem: production must almost be carried out in the United States -this requirement cannot be met. These rules will become stricter in the next few years. At the same time, almost all car companies with American business are now facing a problem: how do they transfer production to the United States? The United States hopes that its industrial chain is more independent of China, but China's raw materials play a very important role in electric vehicle production.

Not only the European Union, South Korea also believes that the rules of the United States are conducive to local electric vehicles and battery manufacturing are a "betrayal". According to a report released by the International Trade Institute of Trade and Trade on September 8th, a report from the Korean Trade Association, the export scale of Korean electric vehicles in 2021 ranked worldwide. It exceeded 300,000 units, an increase of 41.1%year -on -year. The main export destination of South Korean electric vehicles is Europe and the United States. In the first half of 2022, the share of South Korean electric vehicles in the US market rose to 2nd, second only to Tesla. However, Korean car companies focus on the market in the US market. If they cannot be included in the subsidy policy, the market performance of Korean car companies will be greatly affected.

At present, Korean electric vehicle companies have high dependence on Chinese battery raw materials. According to the "Diagnosis of Recent Recent Trade on China Trade in China" issued by the Korea International Trade Association on August 18, in the first half of this year, South Korea's key raw material imported from China -lithium hydroxide increased by 404%. At present, 83.2%of hydrogen hydrogen in South Korea Lithium oxide imports depend on China. Some Korean media believe that the United States '"Angle Act of Inflation" may lead to a decrease in South Korean cars' exports by 100,000.

The "Korea Economic News" reports that in order to eliminate the differences between the "Angle Act" to Korean companies, South Korea will ask the United States to revise laws or take administrative measures.At the same time, South Korea will cooperate with the EU Japan to take multilateral response measures.Global Network/Zhaodong

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