BEIJING - China on Monday requested the World Trade Organization (WTO) to set up an expert panel regarding new energy vehicle (NEV) subsidies under the US Inflation Reduction Act.

To safeguard the rights and interests of its NEV industry, China filed on March 26 a complaint at the WTO dispute settlement mechanism over US subsidies for NEVs. However, the US side failed to reach a solution with China through consultations, which is the reason why China has advanced the case, said a spokesperson for the Ministry of Commerce.

China's NEV industry has made important contributions to the global efforts in green energy transition and responses to climate change, the spokesperson said when addressing media inquiries.

The Inflation Reduction Act takes the use of products from specific regions such as the US as the prerequisite for subsidies, excludes products from WTO members including China, artificially sets trade barriers, and pushes up the cost of green energy transition

The Inflation Reduction Act takes the use of products from specific regions such as the United States as the prerequisite for subsidies, excludes products from WTO members including China, artificially sets trade barriers, and pushes up the cost of green energy transition, said the spokesperson.

ALSO READ: China calls for stronger WTO monitoring of US rule violations

No matter how well-packaged or beautified, the subsidies involved are discriminatory and protectionist in nature, and violate WTO rules.

China is determined to advance the proceedings and take concrete actions to uphold the authority and effectiveness of the multilateral trading system with the WTO at its core and safeguard the joint efforts of the world to address climate change.

China respects WTO members' implementation of industrial subsidies in accordance with WTO rules and in support of green energy transition and economic and social development, said the spokesperson.

READ MORE: China urges US to abide by market principles, global trade rules

"We urge the US side to abide by WTO rules and stop abusing its industrial policies to undermine international cooperation on climate change," the spokesperson said.