Senator Rubio proposed a bill to block subsidies for Chinese battery companies.
On Thursday, March 9th, US Senator Marco Rubio proposed legislation targeting a deal by Ford Motor to use technology from Chinese battery company CATL as part of its $3.5 billion plan to build a battery factory in Michigan. Rubio's bill would prevent electric vehicle batteries produced using Chinese technology from receiving tax credits under the "Inflation Reduction Act," stating that this would "significantly restrict eligibility for IRA tax credit and prevent Chinese companies from benefiting."
Rubio, who is the chief Republican member of the Senate Intelligence Committee and hails from Florida, had previously called on the Biden administration to review Ford's use of CATL technology. He urged the Committee on Foreign Investment in the United States (CFIUS) to immediately review licensing agreements between Ford and CATL.
Rubio argued that this deal "will only deepen America's dependence on Communist China for battery technology and may be intended to qualify this facility for tax credits under IRA."
The CFIUS is an inter-agency committee led by the US Treasury Department responsible for reviewing proposed transactions to ensure they do not harm national security.
Ford responded by saying that manufacturing these batteries domestically was much better than continuing to rely entirely on foreign imports like other car companies. The company stated that only its wholly-owned subsidiary will build, own, and operate the factory without any other entity receiving American taxpayer funding.
The plant is expected to create 2,500 jobs and begin producing lower-cost lithium iron phosphate batteries with faster charging speeds starting in 2026. The Inflation Reduction Act worth $430 billion imposes restrictions on battery procurement aimed at freeing America from China’s electric vehicle supply chain. Under one provision targeting China specifically, it ultimately prohibits any EV battery components manufactured by “foreign entities of concern.”
Additionally, Democratic Senator Joe Manchin criticized comments made by White House advisors suggesting that Chinese firms would become "important players" in growing domestic energy production: "Someone speaking for the White House not only condoning but advocating giving our taxpayer dollars over to a Chinese company is irresponsible," said Manchin.
(This article was based on reporting by Reuters.)
Rubio, who is the chief Republican member of the Senate Intelligence Committee and hails from Florida, had previously called on the Biden administration to review Ford's use of CATL technology. He urged the Committee on Foreign Investment in the United States (CFIUS) to immediately review licensing agreements between Ford and CATL.
Rubio argued that this deal "will only deepen America's dependence on Communist China for battery technology and may be intended to qualify this facility for tax credits under IRA."
The CFIUS is an inter-agency committee led by the US Treasury Department responsible for reviewing proposed transactions to ensure they do not harm national security.
Ford responded by saying that manufacturing these batteries domestically was much better than continuing to rely entirely on foreign imports like other car companies. The company stated that only its wholly-owned subsidiary will build, own, and operate the factory without any other entity receiving American taxpayer funding.
The plant is expected to create 2,500 jobs and begin producing lower-cost lithium iron phosphate batteries with faster charging speeds starting in 2026. The Inflation Reduction Act worth $430 billion imposes restrictions on battery procurement aimed at freeing America from China’s electric vehicle supply chain. Under one provision targeting China specifically, it ultimately prohibits any EV battery components manufactured by “foreign entities of concern.”
Additionally, Democratic Senator Joe Manchin criticized comments made by White House advisors suggesting that Chinese firms would become "important players" in growing domestic energy production: "Someone speaking for the White House not only condoning but advocating giving our taxpayer dollars over to a Chinese company is irresponsible," said Manchin.
(This article was based on reporting by Reuters.)
4 comments
China stole the hypersonic technology, and now the United States no longer has this technology.
Walking on the completely correct path,
The CCP has no right to interfere with other countries' military affairs.
What does it have to do with the CCP?
What qualifications does the CCP have to speak?
The CCP has no right to interfere with other countries' military affairs.
What does it have to do with the CCP?
What qualifications does the CCP have to speak?
The little pink (referring to Chinese nationalists) will never understand the reason for boycotting Xinjiang cotton, as well as the uncompromising stance of the so-called 'evil American empire' on human rights issues. Even if it means buying more expensive products, we cannot buy blood-stained bread!
Can not believe how China spy balloon came to US , wake up American! It’s time to anti-reconnaissance from China! Protect our country!
