Amidst President Joe Biden’s ambitious green energy plan, experts are sounding alarms over fears that China could exploit the initiative, potentially pocketing over $100 billion from US taxpayers. Exclusive industry data reveals that China has already staked its claim on a dozen green energy projects poised to benefit from uncapped tax credits.
Concerns Over Chinese Dominance
The $1.2 trillion plan, designed to enhance American competitiveness in sectors dominated by China, including solar and electric vehicles, has raised concerns among experts. Critics worry that rather than boosting American manufacturing, the plan could inadvertently allow Chinese firms to “extend their global monopoly” and gain dominance in the US market.
Backlash and Local Resistance
Chinese corporations’ involvement in major green energy projects has triggered a backlash in local communities across America. Concerns about environmental and security issues have led to a recent overturning of a township board in Green Charter Township, Michigan, which supported a $2.4 billion electric vehicle (EV) battery plant by CCP-linked firm Gotion.
Spiraling Costs and Chinese Access
The 2022 Inflation Reduction Act (IRA), part of Biden’s climate change combat strategy, has faced scrutiny due to its potential cost. Initial estimates by the Joint Committee on Taxation put the total cost at $369 billion by 2033, while Goldman Sachs suggests it could escalate to $1.2 trillion. Chinese firms, comprising around 15% of all US solar manufacturing investments, could tap into the estimated $133 billion to $190 billion earmarked for solar and EV battery production.
Urgent Calls for Restriction
Industry experts and Republicans are urgently calling on President Biden to bar Chinese firms from accessing US taxpayer money. Critics argue that if Chinese firms gain unfettered access, they could replicate their global market shares in solar (80%) and EV batteries (56%), potentially funneling over $100 billion of US taxpayer money to Beijing through the IRA.
Future Policy Adjustments
As concerns mount, the US Treasury is expected to set new eligibility criteria for subsidies under the IRA. Senator Marco Rubio and Carol Miller have tabled a bill aimed at restricting Chinese firms’ access to US green energy subsidies, emphasizing the need for strict safeguards to ensure national security.
In the quest for a revitalized American renewables industry, the debate intensifies over whether Biden’s plan truly benefits domestic projects or inadvertently aids China, leaving the door open until further policy adjustments.
Source：dailymail.co.uk
