WTO Sides with China Over US in Clean Energy Subsidy Dispute

TL/DR –

A World Trade Organization (WTO) panel has ruled in China’s favor in a dispute with the United States over the US Inflation Reduction Act. The panel found that US clean energy subsidy measures breached WTO rules and instructed the US to withdraw the subsidies. China’s Ministry of Commerce welcomed the decision and urged the US to follow the WTO rules and uphold the international economic and trade order.

China Responds Favorably to WTO’s Ruling on US Inflation Reduction Act

The Chinese Ministry of Commerce has expressed satisfaction with the World Trade Organization’s (WTO) recent ruling on the US Inflation Reduction Act. The ruling, delivered by a WTO panel, supports China’s stance in a dispute with the United States over certain aspects of the Act. The Ministry views this decision as a strong endorsement of the importance of abiding by multilateral trade rules.

The WTO panel released its verdict in Geneva on Friday, local time, addressing the case China had lodged against the United States. The ruling determined that the subsidies for clean energy by the US were in violation of WTO regulations. Consequently, the panel recommended that the US retract these specific subsidies.

China’s Commitment to International Trade Rules

A spokesperson for the Chinese Ministry conveyed that China has consistently played a significant role in upholding WTO rules. They elaborated that China has been a staunch supporter of both the international economic order and the trade rules prescribed by the WTO.

In light of the panel’s findings, the Ministry’s representative expressed hope that the US would show respect for the WTO rulings and rules. They urged the US to rectify its erroneous actions swiftly and take significant steps to protect the international economic and trade order. This, they believe, will contribute to the promotion of stable and orderly trade practices at a global level, according to the statement.

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