{"id":1594547,"date":"2022-08-08T12:40:18","date_gmt":"2022-08-08T16:40:18","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1594547"},"modified":"2022-08-08T12:40:40","modified_gmt":"2022-08-08T16:40:40","slug":"heres-how-china-could-see-a-massive-windfall-from-dems-big-spending-bill","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/heres-how-china-could-see-a-massive-windfall-from-dems-big-spending-bill\/","title":{"rendered":"Here\u2019s How China Could See A Massive Windfall From Dems\u2019 Big Spending Bill"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fheres-how-china-could-see-a-massive-windfall-from-dems-big-spending-bill%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1594547&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>President Joe Biden\u2019s Treasury Department could bend the rules of the Senate Democrats\u2019 climate bill that does not allow electric vehicles (EVs) whose materials are largely produced in China, to qualify for a tax credit, according to Politico.<\/p>\n<p>The \u201cBuy American\u201d provisions in the budget agreement that the Democrats passed on Sunday mean that tax credits do not apply to any current electric car on the market, <a href=\"https:\/\/www.politico.com\/news\/2022\/08\/06\/manchin-electric-vehicle-china-00050145#:~:text=Transportation-,Washington%20bureaucracy%20could%20rescue%20Democrats%20from%20their%20EV%20tax%20credit,to%20break%20its%20own%20rules.\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a> to Politico. However, the Treasury Department and Internal Revenue Service (IRS) may be able to alter or altogether waive the requirement as the agencies have the power to decide how U.S. companies can interact with \u201centities of concern\u201d like China, Politico reported. <strong><a href=\"https:\/\/dailycaller.com\/2022\/08\/04\/senate-dem-automakers-climate-bill-sourcing-china\/\" target=\"_blank\" rel=\"noopener noreferrer\">(RELATED: Senate Dem, Automakers Working To Kill \u2018Buy American\u2019 Provision In Climate Bill, Keep Sourcing In China)<\/a><\/strong><\/p>\n<p>The federal agencies can determine the criteria to judge just how much of an EV battery is created by China or other foreign nations, Politico reported. Additionally, trade executives and state departments of transportation say that it is difficult to find out where battery and EV materials are coming from, which could make it harder for regulators to enforce \u201cBuy American\u201d standards and waive them instead.<\/p>\n<p>Previously, the Department of Transportation (DOT) temporarily waived \u201cBuy American\u201d regulations following the passage of the 2021 infrastructure package to give states more time to adjust to the new rules, <a href=\"https:\/\/www.transportation.gov\/sites\/dot.gov\/files\/2022-05\/Temporary%20Waiver%20of%20Buy%20America%20Requirements%20for%20Construction%20Materials.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a> to DOT documents.<\/p>\n<p>Democratic Sen. Joe Manchin of West Virginia originally pushed for the tax credit restrictions in order to push EV supply chains out of Chinese hands in the interest of national security, <a href=\"https:\/\/www.eenews.net\/articles\/how-manchin-kneecapped-the-climate-bills-ev-tax-credit\/\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a> to E&#038;E News. The bill stipulates that 40% of battery materials must be obtained from North America or a U.S. trading partner in order to qualify for the electric vehicle tax credit starting in 2024, and increasing up to 100% in 2029, <a href=\"https:\/\/www.democrats.senate.gov\/imo\/media\/doc\/inflation_reduction_act_of_2022.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a> to the bill\u2019s text.<\/p>\n<p>Lawmakers, as well as automakers, <a href=\"https:\/\/dailycaller.com\/2022\/08\/04\/senate-dem-automakers-climate-bill-sourcing-china\/\" target=\"_blank\" rel=\"noopener noreferrer\">requested<\/a> a delay in the implementation of the requirements for the tax credits to allow firms to transition their mineral sourcing supply chains more domestically, arguing that the rules were too harsh to benefit any party. Automakers hope the bill\u2019s tax credits of up to $7,500 will incentivize more consumers to buy pricier EVs.<\/p>\n<div id=\"attachment_7496121\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-7496121\" class=\"size-full wp-image-7496121\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1231679852-scaled-1.jpg\" alt=\"\" srcset=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1231679852-scaled-1.jpg 2560w, https:\/\/cdn01.dailycaller.com\/wp-content\/uploads\/2022\/08\/GettyImages-1231679852-180x120.jpg 180w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1231679852-620x413-1.jpg 620w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1231679852-768x512-1.jpg 768w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1231679852-1536x1024-1.jpg 1536w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1231679852-2048x1365-1.jpg 2048w\" \/><\/p>\n<p id=\"caption-attachment-7496121\" class=\"wp-caption-text\">This photo taken on March 12, 2021 shows workers at a factory for Xinwangda Electric Vehicle Battery Co. Ltd, which makes lithium batteries for electric cars and other uses, in Nanjing in China\u2019s eastern Jiangsu province. (Photo by STR\/AFP via Getty Images)<\/p>\n<\/div>\n<p>China was responsible for 60% of the global production of cobalt and rare earth materials in 2019, elements that are essential for producing EVs, <a href=\"https:\/\/www.iea.org\/reports\/the-role-of-critical-minerals-in-clean-energy-transitions\/executive-summary\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a>\u00a0to a 2021 International Energy Agency report. China\u2019s dominance is even more evident when one considers processing, where its share of refining is around 35% for nickel, 50% to 70% for lithium and cobalt and nearly 90% for all rare earth elements.<\/p>\n<p>The \u201cclean vehicle\u201d tax credits in the Democrats\u2019 bill come as part of the Biden administration\u2019s aggressive <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2022\/07\/20\/remarks-by-president-biden-on-actions-to-tackle-the-climate-crisis\/\" target=\"_blank\" rel=\"noopener noreferrer\">climate agenda<\/a>\u00a0at a cost of $7.5 billion over the next 10 years,\u00a0<a href=\"https:\/\/www.finance.senate.gov\/imo\/media\/doc\/jct_distributional_effects_inflation_reduction_act.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a> to the Joint Committee on Taxation.<\/p>\n<p>The Treasury Department and IRS did not immediately respond to the Daily Caller News Foundation\u2019s request for comment.<\/p>\n<p>Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact <a href=\"mailto:licensing@dailycallernewsfoundation.org\">licensing@dailycallernewsfoundation.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Joe Biden\u2019s Treasury Department could bend the rules of the Senate Democrats\u2019 climate bill that does not allow electric vehicles (EVs) whose materials are largely produced in China, to<\/p>\n","protected":false},"author":985,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1594547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1594547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/985"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1594547"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1594547\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1594547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1594547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1594547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}