US Says WTO Rules ‘Inadequate’ After Group Sides With China in Dispute The World Trade Organization (WTO) has ruled in favor of China’s claims that certain U.S. tax credit programs discriminate against Chinese products. The U.S. Trade Representative (USTR) criticized the findings, stating that existing WTO rules are inadequate to address issues like excess capacity. China had challenged the Inflation Reduction Act’s tax credit programs, which were designed to promote domestic renewable energy investment by favoring U.S.-made goods.

• The WTO issued findings upholding China’s claims of U.S. tax credit program discrimination against Chinese products.
• The U.S. Trade Representative criticized the WTO ruling, deeming current rules inadequate for issues like excess capacity.
• China challenged the Inflation Reduction Act (IRA) at the WTO over tax credits not applicable to Chinese products.
• The IRA aims to promote domestic renewable energy investment, offering subsidies contingent on the use of U.S.-made goods.