Biden’s Plan To Make China Richer

Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 , via Wikimedia Commons

(FixThisNation.com) – On Friday morning, the Biden administration put out the new guidance that will help consumers and automakers understand which electric vehicles (EV) can benefit from the 2022 Inflation Reduction Act (IRA) tax credits.

The guidance was released by the Treasury Department, the Energy Department, and the White House Office of Clean Energy Innovation and Implementation. As per the IRA, EVs that have any of their critical minerals or battery components come foreign entity of concern (FEOC) are not eligible to receive the $7,500 federal credit starting in 2025 and 2024 respectively.

The guidance further notes that under the federal government, an FEOC is interpreted to be an entity that either operates within or has its headquarters in Iran, North Korea, Russia, or China. It is further noted that a covered nation’s government cannot control over 25 percent of the entity’s interest, voting rights, or board seats.

In a statement, Treasury Secretary Janet Yellen noted that the Inflation Reduction Act had helped the United States have a manufacturing boom and that there are ecosystems developed in the country that will help the “clean vehicle supply chain.”

John Podesta, the White House clean energy czar, noted that President Biden had gone into office to reverse the trend of having manufacturing jobs and factories move overseas. He added that the Investing in America agenda means that the future of EVs will be in the United States.

However, this guideline and the definition of FEOC could potentially allow Chinese firms to enter this market taking advantage of these subsidies through partnerships, investments, and other licensing deals.

Copyright 2023, FixThisNation.com