BEIJING, March 26 — China has lodged a complaint with the World Trade Organization over subsidies provided by the United States for its new energy vehicle sector, Beijing said today, accusing Washington of unfair competition.

The US Inflation Reduction Act "formulates discriminatory subsidy policies for new energy vehicles ... distorts fair competition, seriously disrupts global new energy vehicle industrial and supply chains, and violates WTO rules," China's Ministry of Commerce said.

"China firmly opposes this," the ministry said, adding it urged the United States to abide by WTO rules and correct its "discriminatory industrial policies".

China earlier this year overtook Japan as the world's biggest vehicle exporter, with customs bureau data showing it exported 5.22 million cars in 2023 — one in three of which were all-electric models.

The announcement comes as Beijing and Washington lock horns over a range of trade issues including tariffs, advanced technology restrictions and the video app TikTok, which many US politicians say poses a national security threat.

At a regular WTO meeting last year, China asked the United States, Japan and the Netherlands to confirm the existence of an agreement between the three countries to curb semiconductor exports to China.

Washington has in recent years attempted to cut Chinese companies out of supply chains that provide access to advanced chip technology, while urging its allies to adopt similar measures. — AFP