Global Battery Industry Faces Uncertainty as US and China Clash Over Regulations

China has criticized the Biden administration's plans to limit Chinese content in batteries eligible for electric vehicle tax credits, stating that it violates international trade norms and disrupts global supply chains. The plans would make investors in the U.S. electric vehicle supply chain ineligible for tax credits if they use critical materials from China or other countries deemed a "Foreign Entity of Concern." China's dominant position in the global battery supply chain has raised concerns among U.S. and European officials, leading to investigations into unfair state subsidies. However, analysts question whether the risks associated with China's position warrant the proposed measures.