China's Ministry of Commerce announced today that China has resorted to the WTO dispute settlement mechanism to challenge U.S. electric vehicle subsidies, in order to "protect the interest of Chinese new energy vehicle companies and the fair competition environment for the global new energy vehicle industry.

An Indiana Congressman has written to the Commerce Department calling for a Section 232 investigation of Chinese EVs and batteries, and suggesting "global" import tariffs on these products.

Two Republican Senators have recently introduced legislation that would raise tariffs on imports of Chinese autos and clean energy products.

As Chinese auto exports increase rapidly, the scrutiny by foreign governments may intensify. Beijing is likely to use a wide range of tools to fight back while continuing support for its auto industry.

The Financial Times reported today that "Washington has warned Beijing that the US and its allies will take action if China tries to ease its industrial overcapacity problem by dumping goods on international markets, according to American officials."

Last week, Beijing issued a document outlining measures to support the sale of new energy vehicles in international markets, focusing on seven areas: international operation, logistics, financial support, trade promotion, business environment, and risk-prevention.

At the October 27 meeting of the WTO's Committee on Subsidies and Countervailing Measures, for which the minutes were recently circulated, there were criticisms by China of other Members' countervailing duty practices (including the recent EU action on electric vehicles), and criticisms by other Member of China&