The United States and the European Union will set up a group to discuss the subsidy of electric vehicles.

Oct. 26, according to foreign media reports, officials from the United States and the European Union (EU) said in a statement on Tuesday that a working group would be formally set up next week to discuss the new US law, the inflation reduction Act, which Europe fears discriminates against foreign manufacturers.

It is reported that the inflation reduction Act promulgated by the US government in August is aimed at curbing climate change and making Washington a leader in the electric car market. There are provisions that require electric vehicles to be assembled in North America to qualify for a tax credit and require that some of the key minerals they use come from the United States or its free-trading partners.

According to the spokesman, Mike Pyle, the president's national security adviser, agreed to set up a working group on the subject during a meeting earlier in the day with Bjorn Seibert, head of the cabinet of European Commission President Ursula von der Lane. The working group will "promote a better understanding of the opportunities and concerns of EU producers".

At the same time, the rule has also caused resentment from the South Korean government and car companies, and South Korean officials are working closely with the US government to adjust the tax credit restrictions, according to the South Korean ambassador to the United States.