The WTO has now circulated China's consultations request related to the EU's definitive countervailing duties on Chinese electric vehicles.

At the meeting of the Committee on Subsidies and Countervailing Measures (SCM) earlier this week, China and other WTO members debated the issue of capacity/overcapacity, and the chair expressed concern with the level of compliance by WTO Members with their subsidy notification requirements.

Last week, the U.S. Department of Commerce made its first determinations involving transnational subsidies under new regulations that allow these subsidies to be countervailed, in four linked cases on solar products. These determinations could eventually lead to litigation in U.S. courts or at the WTO on this issue.

A U.S. Commerce Department investigation that will apply new transnational subsidy rules for the first time is underway, with Commerce asking the Chinese government for details about its subsidies in the solar sector related to production in Cambodia, Malaysia, Thailand, and Vietnam. The Chinese government has now responded.

A new IMF paper tries to quantify Chinese subsidies and their effects, and ties them to the debate on "overcapacity."

China's Ministry of Commerce (MOFCOM) announced today that it had requested that the World Trade Organization (WTO) set up a panel to hear its claim that subsidies for new energy vehicles provided under the U.S. Inflation Reduction Act (IRA) violate a number of WTO obligations.

At a Council on Foreign Relations event today, Under Secretary of the Treasury for International Affairs Jay Shambaugh offered comments on "Chinese Overcapacity and the Global Economy."