China has lodged a WTO complaint against the U.S. over electric vehicle subsidy rules perceived as discriminatory.

The U.S. rule disqualifies EV tax credits for vehicles using minerals or components from Chinese and other specified countries.

China claims the U.S. rule hinders fair competition and disrupts the global EV supply chain.

Effectiveness of China's WTO action is uncertain due to the non-operational status of the WTO's Appellate Body.

The EU is investigating Chinese electric vehicle subsidies, mirroring concerns over fair competition.

U.S. policy changes force automakers to alter supply chains, with only 13 out of 50+ EV models now eligible for tax credits.

Chinese EV manufacturers like Nio and BYD face challenges in the U.S. market but remain committed to future entry.