India, March 27 -- China has started dispute settlement proceedings at the World Trade Organization against the United States over subsidies on electric vehicles offered by the Joe Biden government under the Inflation Reduction Act (IRA). The subsidies under IRA are applicable on EVs which have their final assembly in North America, making them more affordable than comparable models manufactured or assembled elsewhere.

China is the world's largest manufacturer of - and market for - EVs. But while global brands compete with local players within China, Chinese companies are now looking to enter the US market as well. But while relatively affordable even when brought in via import route, these models would have a more fierce battle at hand ...