China could flood U.S. electric-vehicle market with cheap offerings

Energy Secretary Jennifer Granholm warned on Wednesday that China could supply low-cost products to the U.S. electric vehicle market, weeks after U.S. President Joe Biden raised similar concerns.

“We are very concerned about China’s aggressive development of our industry in the United States even though we are now building this incredible backbone of manufacturing,” Granholm said during a panel at a symposium. axios event.

China is seen as a threat to the U.S. auto industry as U.S. auto exports decline and companies like General Motors cut international operations.

“We’re seeing this in the solar industry…the market is flooding,” Granholm said.

China’s automobile exports will reach nearly 5 million units in 2023According to data from the China Association of Automobile Manufacturers, China will surpass Japan in 2023 and become the world’s largest automobile exporter.

Chinese electric vehicle makers are also releasing new models at a record pace, and the outlook for Chinese automakers remains stable despite increased competition Fitch Ratings December.

“China is investing heavily, so we need to understand that it’s important for people to be able to afford electric vehicles, but we can do it and we can keep our country safe,” Granholm said.

the white house stated Last month, the United States was investigating Whether imported cars from China pose a national security risk because they can collect and send sensitive data about U.S. citizens and infrastructure to China.

“China’s policies could flood our markets with its vehicles, posing risks to our national security,” U.S. President Joe Biden said in a statement. statement. “I won’t let that happen on my watch.”

The United States is trying to promote the domestic electric vehicle supply chain in the following ways Inflation reduction act, providing tax credits For vehicles assembled in North America, meeting critical mineral and battery component requirements, among other conditions.

Its battery components are made of “foreign entities of concern” Right now China, Iran, North Korea and Russia Not eligible for tax benefits.

“We also know that if it’s made in the United States and through incentives from the Inflation Reduction Act, we can get those price points down,” Granholm said. “Electric vehicle adoption doubled last year,” Granholm said. It is expected to increase.”

In recent years, the United States has continued to increase pressure on Chinese companies.

In October 2022, China introduced rules aimed at limiting China’s ability to obtain, obtain or manufacture advanced semiconductor chips due to concerns that China may use them for military purposes.

Last year, the United States announced new regulations banning U.S. chip designer Nvidia from selling advanced artificial intelligence chips to China.

The U.S. Senate voted on Wednesday to pass Approves a bill that could restrict business with Chinese biotech companies For example, WuXi AppTec and BGI cited national security concerns.