{"id":2179653,"date":"2024-02-19T05:11:02","date_gmt":"2024-02-19T10:11:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-inflation-reduction-act-meant-to-counter-china-prompted-explosion-in-chinese-battery-imports\/"},"modified":"2024-02-19T05:17:06","modified_gmt":"2024-02-19T10:17:06","slug":"bidens-inflation-reduction-act-meant-to-counter-china-prompted-explosion-in-chinese-battery-imports","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-inflation-reduction-act-meant-to-counter-china-prompted-explosion-in-chinese-battery-imports\/","title":{"rendered":"Biden&#8217;s Act to Reduce Inflation Spurs Surge in Chinese Battery Imports"},"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\">22<\/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%2Fbidens-inflation-reduction-act-meant-to-counter-china-prompted-explosion-in-chinese-battery-imports%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=2179653&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--><blockquote>\n<h2>Imports \u2063of Chinese \u2063lithium batteries surge over 500% \u200bunder Biden&#8217;s administration<\/h2>\n<figure><figcaption>(White House, via Wikimedia Commons)<\/figcaption><\/figure>\n<\/blockquote>\n<div>\n<p>In July\u200b 2022, just \u200bbefore President Joe Biden signed\u2063 the Inflation Reduction Act into law, he promised that the bill would empower the United States to compete with China \u2063and its dominant battery industry. Fast forward one year, and U.S. imports of Chinese-made batteries have skyrocketed to record levels, according to data from the\u200d Census Bureau reviewed by the <em>Washington \u2064Free Beacon<\/em>.<\/p>\n<p>Biden&#8217;s\u200b landmark climate legislation introduced various subsidies to\u2063 facilitate America&#8217;s transition to a green energy\u200d economy. These included tax credits of $7,500 for electric vehicles, $1,000 for\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-finally-built-an-electric-vehicle-charging-station-people-arent-using-it\/\" title=\"Biden's EV Charging Station: Underutilized\">electric \u2064vehicle chargers<\/a>, and covering 30% of the cost of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-biden-promises-u-n-climate-summit-i-will-remake-american-economy-to-lead-world-to-net-zero\/\" title=\"Joe Biden Promises U.N Climate Summit: I Will 'Remake' American Economy to Lead World to 'Net-Zero'\">installing solar panels<\/a>. \u200bHowever, China holds a monopoly on\u2063 the global supply of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/iea-u-s-lacks-critical-minerals-bidens-policies-benefit-china\/\" title=\"IEA: U.S. lacks critical minerals, Biden\u2019s policies benefit China\">rare earth materials<\/a> necessary for \u200bproducing these technologies. Trade data \u2064reveals that imports\u2064 of Chinese electric vehicle components have\u2062 surged\u200d since the \u2062Inflation Reduction Act \u200dwas signed into law.<\/p>\n<p>Census Bureau data shows that\u200d American imports of Chinese <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/outdated-solar-panels-wind-turbines-electric-car-batteries-will-clog-landfills-with-hazardous-waste-according-to-new-report\/\" title=\"Outdated Solar Panels, Wind Turbines, Electric Car Batteries Will Clog Landfills With Hazardous Waste According To New Report\">lithium-ion batteries<\/a>, \u200ba crucial component in electric vehicles, \u200chave surged by over 500% since Biden assumed office. In 2020, the year before Biden took office, the United States imported only $2 billion worth of \u2063lithium-ion batteries\u200c from China. By 2023, imports \u200dof Chinese lithium-ion batteries\u200c had soared to over $13 billion.<\/p>\n<p>The surge in imports was particularly notable after Biden signed the Inflation \u200bReduction\u2063 Act. From January 2021 to July 2022, before the law was\u200b enacted, lithium-ion battery \u2063imports from \u2063China averaged $473 million per month. After the law&#8217;s implementation, imports averaged over $1 billion per month.<\/p>\n<p><a href=\"https:\/\/freebeacon.com\/?attachment_id=1861653\" rel=\"attachment wp-att-1861653\"><\/a><\/p>\n<p>The \u20632023 figure likely represents only \u2064a fraction of China&#8217;s total gains from Inflation\u200d Reduction Act subsidies, as noted by Sal Nuzzo, senior\u200c vice\u2064 president at\u200c the James \u200cMadison Institute.\u2063 Nuzzo pointed out\u2064 that\u2063 China\u200c is\u200b circumventing rules that prohibit subsidized products from using battery materials\u2062 sourced from China or other &#8220;foreign nations of \u200cconcern.&#8221;<\/p>\n<p>&#8220;Approximately 70%\u200c of cobalt is produced \u200din Africa, primarily in the Congo,&#8221; Nuzzo \u2064told \u2063the <em>Free Beacon<\/em>.\u200c &#8220;While the country\u200d may be friendly, the\u2063 mine is owned by a Chinese conglomerate or a\u200c multinational controlled by the Chinese\u200d government. So, \u2062even if\u200d regulations \u200brequire sourcing from a \u2062friendly country, \u2062who ultimately owns \u200bthe\u200b facility producing \u200cthe\u200c materials?&#8221;<\/p>\n<p>&#8220;When\u2064 you \u200cdelve deeper, it becomes increasingly evident\u2062 that the provisions in the Inflation Reduction Act could have been directly written by the Chinese Communist government,&#8221; Nuzzo continued.\u200b &#8220;Even measures ostensibly designed to limit \u200bChinese influence are drafted \u200bin a way that allows for workarounds.&#8221;<\/p>\n<p>A 2022 report from the Energy \u200cDepartment acknowledged that \u200cChina exercises\u200c &#8220;across the board&#8221; control over the global supply of rare earth materials necessary for clean energy technologies. In recent months, \u200cthe Biden administration has taken steps \u200cto weaken &#8220;Buy American&#8221; provisions in the\u2064 Inflation Reduction Act and the \u2064earlier $1 trillion infrastructure law,\u200c ultimately \u2063benefiting\u2062 China.<\/p>\n<p>Most recently, in 2023, the Biden administration\u200b waived &#8220;Buy American&#8221; requirements for federally\u200d funded\u200d electric vehicle chargers. The 2021 \u200cinfrastructure law allocated\u200d $5 billion to establish a nationwide network\u2063 of charging stations, but as of December, only two\u2062 states have \u2064opened stations\u2062 funded by this measure, \u2064as reported by the <em>New York Times<\/em>.<\/p>\n<p>Senator Marco Rubio (R., \u200bFla.) led an effort to block\u2063 the waiver, arguing that the funds should be used\u200c to purchase \u2064charging stations &#8220;made by Americans in America using American products.&#8221;<\/p>\n<p>However, Biden \u2062 <a href=\"https:\/\/apnews.com\/article\/electric-vehicles-chargers-gop-veto-biden-manufacturing-1b4e11a7de171297dfd731f882e32c3d\" target=\"_blank\" rel=\"noopener\">vetoed<\/a> the bill in January, despite its bipartisan support from Senators \u200cSherrod\u2063 Brown (D., Ohio) and Joe \u2063Manchin (D., W.Va.). The \u2063president stated that domestic manufacturers require more time to ramp up production.<\/p>\n<p>&#8220;There \u2063is absolutely no logical reason\u200c to\u200c channel\u2063 taxpayer \u200ddollars\u2063 to Chinese companies,&#8221; Rubio remarked\u2064 following Biden&#8217;s veto. &#8220;President\u200d Biden should prioritize the interests\u200b of the American people, heed the bipartisan\u2063 wishes of Congress, and cease\u2063 favoring foreign industries.&#8221;<\/p>\n<\/div>\n<p> <\/p>\n<h2> How \u200ddoes the surge in imports of Chinese\u200c batteries\u200d under the \u200dInflation Reduction Act inadvertently benefit \u2062China&#8217;s dominance\u200b in the lithium battery industry?<\/h2>\n<p><span>  Ecomes clear\u200b that the\u200c Inflation Reduction Act is inadvertently benefiting China&#8217;s dominance in the lithium battery industry,&#8221; Nuzzo\u200d added.<\/p>\n<p>The surge in imports of Chinese lithium batteries raises concerns about the United States&#8217; dependency on China for\u2062 critical components of green energy technologies. With China controlling the global supply of rare earth \u200bmaterials, including cobalt, which is essential\u200c for lithium-ion batteries, \u200bthe U.S. finds itself relying heavily on\u2064 Chinese imports to meet the \u2064growing demand for electric vehicles and other \u200dgreen energy solutions.<\/p>\n<p>Critics argue that \u200bthis overreliance on Chinese batteries poses significant risks to national security and economic stability. \u200dIn the\u200d event of a\u200c disruption in the supply chain or trade tensions between the two countries,\u2064 the United States could face shortages and skyrocketing \u2064prices for key components,\u200c hindering the development of domestic \u200dindustries and slowing down the transition to a green economy.<\/p>\n<p>Furthermore, concerns arise regarding the use of subsidies to support the Chinese battery industry\u200b indirectly. The Inflation Reduction Act \u2064aims to promote\u2064 domestic\u2062 production and job creation within the United States. However, the surge in imports\u2064 of Chinese\u200d batteries suggests\u2063 that \u2063the subsidies intended to bolster American \u200dindustries are instead bolstering China&#8217;s\u2063 battery \u200bindustry.\u200d This \u200bunintended consequence \u2062calls for a reassessment of the effectiveness and targeting of government policies to ensure \u2064they \u2062truly benefit domestic industries and contribute to the nation&#8217;s\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/4-intellectuals-who-started-out-liberal-but-ended-up-conservative\/\" title=\"4 Intellectuals Who Started Out Liberal But Ended Up Conservative\">long-term economic growth<\/a>.<\/p>\n<p>To address these concerns and\u2064 reduce dependency on Chinese battery\u2062 imports, policymakers \u200bmust \u200dprioritize the development \u2062of domestic supply chains\u200b for\u2062 critical\u200d components of green \u200cenergy technologies. This includes investing in research and development to find \u2064alternatives to rare \u200bearth materials sourced primarily from\u200d China. Additionally, incentivizing domestic production through targeted subsidies and tax breaks can\u2064 help stimulate investments in battery manufacturing facilities within the \u200dUnited States.<\/p>\n<p>Collaboration \u2063and partnerships with friendly\u2062 nations that have access to alternative sources of rare \u2063earth materials should also be explored. Building alliances beyond China can diversify\u2062 the supply chain and reduce the risks associated with overdependence on one country.<\/p>\n<p>In conclusion, the surge in imports of \u2063Chinese lithium batteries under Biden&#8217;s administration raises concerns about the \u200dUnited States&#8217; dependency \u200don China for\u200c critical components \u200bof \u2063green energy technologies. While the Inflation\u200b Reduction \u2063Act aimed to\u2064 promote domestic industries,\u2064 it inadvertently boosted China&#8217;s battery\u2064 industry.\u200d Policymakers must now pursue strategies to reduce dependency and prioritize\u2063 domestic production and sourcing options. By \u2062diversifying supply chains and investing \u2062in research and development, the \u2062United States can\u200d safeguard \u2063its economic and national security interests \u200dwhile \u200badvancing the transition to a sustainable future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chinese lithium battery imports have surged over 500% since President Biden assumed office. In July 2022, President Biden expressed that the Inflation Reduction Act would empower the US to rival China&#8217;s battery industry, shortly before signing it into law. (Image: White House, via Wikimedia Commons)<\/p>\n","protected":false},"author":108,"featured_media":2179654,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/freebeacon.com\/wp-content\/uploads\/2024\/02\/President_Biden_met_with_Xi_Jinping_before_the_2022_G20_Bali_Summit_736x514-6.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2179653","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/freebeacon.com\/wp-content\/uploads\/2024\/02\/President_Biden_met_with_Xi_Jinping_before_the_2022_G20_Bali_Summit_736x514-6.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2179653","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\/108"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2179653"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2179653\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2179654"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2179653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2179653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2179653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}