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‘Mugged By Reality’: Biden Opened The Door For Chinese EVs To Flood The US Before Moving To Cork It Up, Experts Say

Energy and trade experts told the Daily Caller News Foundation that the Biden administration has created the conditions for Chinese electric vehicles (EVs) to overwhelm U.S. competitors and is now trying to stop that possibility. He is said to be enthusiastic.

Backed by President Joe Biden's signature Inflation Control Act (IRA), the administration aim The goal is for 50% of all new car sales to be electric vehicles by 2030, and the goal is to aggressively regulate the auto market and spend billions of dollars encouraging consumers and manufacturers to adopt EVs. We are working to build a domestic supply chain for this purpose. However, the administration's conflicting green industrial policies and China's control of key supply chains have led to Chinese companies using subsidies to sell cheap EVs to the U.S. market, despite the administration's continued efforts to squeeze out Chinese companies. could overflow, trade and energy experts said. DCNF.

“The Biden administration has a problem of its own making, knowing that China owns or controls more than 80% of the minerals and materials used in nearly all EV parts, not just those made in China. Yet they have made EVs the centerpiece of their efforts to combat climate change,” said Tom Pyle, CEO. members of the U.S. Energy Alliance told DCNF. “Even if we were successful in preventing Chinese brands like BYD from entering the United States, we would still be undermining the IRA’s intentions in our own laws by creating truck-driving loopholes in our domestic content regulations.” I almost ignore it.” (Related: Former EPA chief of staff Mandy Gunasekara warns that Biden's push for electric vehicles will be a big boost for China)

biden said China is using unfair trade tactics to dominate the auto market and flood the U.S. with cheap EVs, it said on February 29, adding that some Chinese-made EV models pose serious national security concerns. It warned that it could pose a risk of security and espionage. He said in a statement that he has directed the Commerce Department to begin investigating these models to determine what can be done to address the major risks they pose to U.S. national security.

“It appears that Team Biden is starting to be fooled by reality,” Dan Kish, a senior fellow at the Energy Institute, told DCNF. “They act surprised when they discover the obvious fact that they have real problems behind the scenes with EVs and China, security and subsidy design…Biden policies Anyone who looked at the structure and goals of. These issues could have been an indication that this type of problem would clearly occur.”

The Commerce Department investigation could undermine plans to invest in manufacturing facilities in Mexico, ostensibly to give Chinese companies a new route into the U.S. market. according to To Axios. It's “only a matter of time” before Chinese companies take advantage of loopholes in U.S. trade laws to expand into Mexico. according to It was addressed to Connor Pfeiffer, Director of Congressional Relations at the Foundation for Democracy and Defense.

Chinese automaker BYD, the world's largest pure EV producer, is currently looking for a factory site in Mexico to increase its share of the “local market.” according to to Reuters.

Overall, the conflict between China's dominance in key EV supply chains and the Biden administration's green industrial policy reflects a disjointed approach to industrial policy that increases the risk of leveraging the Biden administration's taxpayer-supported EV goals to China's interests. , other trade and energy experts say. he told DCNF.

Some Chinese companies, including those involved in steel and solar panel production, intentionally send their components through third countries to avoid U.S. tariffs, sanctions, and other rules governing imports. Pyle told DCNF that there is a “long history” of

Biden's EV plan is a key pillar of his broader green industrial policy, which essentially calls for a massive wave of domestic green energy investment and production driven by new subsidies, regulations and policies. The company says it can breathe new life into the U.S. industrial base.

However, these goals may conflict with each other when it comes to EVs. The main reason for this is that China controls the global supply chain for the minerals and refining capacity needed to produce EV batteries, allowing it to produce EVs at high standards. much lower cost than American manufacturers. The Biden administration must strike a delicate balance to meet both sides of the green industry agenda. according to To the Financial Times. (Related: Biden's EV dreams could come to a screeching halt as consumer enthusiasm wanes)

“There is no comprehensive strategy. If we are going to do industrial policy in the United States, it means more than just handing out money or going to groundbreaking ceremonies and patting ourselves on the back.” said Nazak Nikakhtar, Wiley Lane's national security director and former assistant secretary. The Under Secretary of Commerce told DCNF. “In practice, that means enacting a meaningful set of policies that ensure the success of domestic investment.”

This disjointed approach was exposed in December 2023, when the administration proposed eligibility requirements for the IRA EV tax credit, allowing vehicles manufactured using minerals mined and processed by Chinese companies to be eligible until 2025. Approved that it is eligible for subsidies.

“The reality is that the vast majority of US spending on EVs and solar and wind hardware, whether through subsidies, grants or mandates, will directly benefit China. “This was necessary because China is a complete supplier of key energy minerals and components,” Mark Mills, distinguished senior fellow and auto market expert at the Texas Public Policy Foundation, told DCNF. “Therefore, whether these materials are used in EVs assembled in the U.S. or in China is just a detail.” It is no exaggeration to say that the policy will bring victory for China both economically and geopolitically. ”

The White House did not respond to requests for comment.

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