Foreign companies are the top beneficiaries of Biden’s climate funding.
Foreign Companies Benefit from Biden’s Climate Law
Joe Biden walks past solar panels while touring the Plymouth Area Renewable Energy Initiative in Plymouth, New Hampshire, U.S., June 4, 2019. REUTERS/Brian Snyder/File Photo
According to an analysis by the Wall Street Journal, more than 60 percent of climate subsidies from President Joe Biden’s climate law passed last year went to projects involving foreign companies. This raises concerns about the impact on American businesses and the economy.
The Inflation Reduction Act is set to throw more than $1.2 trillion in tax incentives and loans to green energy industries over the next 10 years, according to a Goldman Sachs forecast. Since the law’s passage in August, the federal government has injected $110 billion in climate subsidies into the economy. Shockingly, the Journal reports that 15 of the 20 largest investments went to companies based overseas or tied to foreign businesses.
Biden touted the law as a plan to build in the United States “with American companies” and bolster the country’s ability ”to compete with China for the future.” However, $8 billion of the $110 billion in total investment spurred by the law went to companies based in China or with substantial ties to the country, according to the Journal.
The report comes as the Biden administration has faced criticism for how its energy agenda benefits China. In January, the Washington Free Beacon reported that the Energy Department was funneling $50 million to a lithium battery company that sourced its materials from China. The department was also set to send $200 million to a battery company whose CEO had gone through a Chinese Communist Party program that the FBI warned was used for economic espionage. The administration called off the investment in May.
Two projects in Michigan are drawing fire for their connections to China. Ford is partnering with Chinese tech company CATL on a $3.5 billion battery factory in southern Michigan. Another Chinese company, Gotion, is seeking to build a $2.4 billion battery-component factory near Grand Rapids. The Gotion plant has faced opposition from local residents due to its ties to the Chinese Communist Party.
It’s not just China that benefits from Biden’s climate law. Other foreign companies, including those from South Korea and Japan, are investing in projects like battery plants based in the United States. For example, Japanese tech company Panasonic could receive more than $2 billion in tax credits for its battery plants in Nevada and Kansas.
Experts project that the law could inject $3 trillion in green subsidies into the global economy over the next decade. While the intention behind the law is to combat climate change and promote renewable energy, the dominance of foreign companies in receiving subsidies raises concerns about the impact on American businesses and the country’s economic growth.
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