Biden’s Climate Bill Was Meant To Combat China. Now a Chinese Firm Is Poised To Cash In.

Ford uses Chinese labor and parts in its new battery plant. Ford still hopes to get Biden tax credits. Chinese President Xi Jinping drives an open-top car /Getty Images

President Joe Biden passed nearly $400 billion worth of legislation “green energy” He said that the huge federal spending would make America more competitive with China and provided subsidies last summer. Ford, the auto giant, announced this week that it will use Biden’s tax credit to produce electric vehicles with Chinese workers and technology.

Ford Announced last week It is spending $3.5 billion to construct a Michigan plant that will make EV batteries with Contemporary Amperex Technology Co. Limited, a Chinese battery company. Ford says that the Chinese firm not only provides technology, but also sends equipment and workers for the construction and operation of the factory.

Biden promised His huge climate spending package, the Inflation Reduction Act, would grant the United States the ability to “to compete with China for the future.” Democrats pushed this law through Congress along party lines. The provisions bar companies from qualifying to tax credits if any EV components were made by a “foreign entity of concern,” This provision is intended to quell concerns that China might benefit.

Ford, however Expressed confidence Monday saw the announcement that its EV battery factory, located 100 miles west of Detroit’s city limits, would be eligible for federal tax cuts under the Inflation Reduction Act. Ford’s Chinese partner is not directly involved in the agreement, which means that the company owns 100% of the factory.

Biden’s Inflation Reduction Act could result in taxpayer money being sent to America’s most powerful global rival. The U.S. auto giant’s reliance on the foreign firm reflects China’s iron grip on the green energy supply chain—which has plagued The White House All efforts “catalyzing America’s clean energy economy” With federal subsidies

Ford China’s partnership is vital “build more EVs faster” That battery technology and materials are “implementable”always imported.“

Ford announced the Michigan factory after Glenn Youngkin, Virginia governor (R.), in January Withdrew his state From negotiations to host it. The Republican indicated that he would not allow taxpayer funds to be used. “recruit Ford as a front for China.”

Ford is behind the scenes working to build

*As an Amazon Associate I earn from qualifying purchases