US discriminatory subsidies disrupt NEV supply chain: expert

US discriminatory subsidies disrupt NEV supply chain: expert

China is challenging the United States' subsidies for new energy vehicles (NEVs) at the World Trade Organization. A trade expert argues that the US subsidies are discriminatory and disrupt the global supply chain. The expert points out that the subsidies require production to take place in North America and certain minerals to come from specific countries, excluding China. The expert urges the US to correct its policies for global climate response and compliance with WTO rules.

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FAQ: US Discriminatory Subsidies Disrupt NEV Supply Chain

Frequently Asked Questions: US Discriminatory Subsidies Disrupt NEV Supply Chain

Q1: What is the expert's main concern about US subsidies for new energy vehicles (NEVs)?

A1: The expert is concerned that the United States' subsidies for NEVs are discriminatory and will seriously disrupt the global supply chain for these vehicles. This could impact international trade and the global market's balance in NEV production and distribution.

Q2: Why are the US subsidies for new energy vehicles considered discriminatory?

A2: Although the specific policies are not detailed in the search results, such subsidies are often designed to favor domestic production and manufacturers, possibly at the expense of foreign competitors. This can lead to trade tensions and accusations of protectionism.

Q3: What are the goals of the US with regards to supply chains according to the information provided?

A3: According to the search results, the United States aims to strengthen its critical industrial base sectors, revitalize manufacturing, and innovate supply chains. However, the expert from China Daily suggests that the US's approach may be aimed at dominating these supply chains, possibly marginalizing specific countries.

A4: Yes, the CHIPS and Science Act of August 2022, as mentioned in one of the search results, is aimed at strengthening American manufacturing and supply chains, with a focus on semiconductors, which are essential for modern electronic devices including NEVs.

Q5: What is the proposed outcome of the US policies on supply chains?

A5: The intent, as gleaned from the search results and commonly associated with such policies, is to create secure and resilient supply chains. However, the impact of the US subsidies on international relationships and the global supply chain remains a concern, as some experts believe these could create unfair trade practices.

Q6: How have economists influenced trade policy in this context?

A6: Economists often provide a strong rationale for free trade and the removal of trade barriers. The report from the Wilson Center indicates economists' impact on crafting policies that might encourage free trade, in contrast to the subsidy-driven approach suggested in the other sources, which could be seen as a barrier to trade.

Q7: What is "friendshoring" as mentioned in relation to the Clean Vehicle tax credit?

A7: "Friendshoring," as mentioned in the Stanford policy brief, refers to locating supply chains in countries that are political allies or partners, which can be incentivized through financial mechanisms like the Clean Vehicle tax credit for consumer EV purchases.

For reference or more detailed information, please refer to the links provided in the search results above.