Biden's China crackdown jeopardizes EV ambitions and tax credits

The Biden administration has released new rules for electric vehicle (EV) tax credits that aim to reduce Chinese imports but may hinder the transition to EVs in the US. The rules disqualify vehicles from receiving the credit if their suppliers have any ties to China, such as producing parts in China or having Chinese-controlled board seats. This move comes as the US seeks to break Chinese dominance in EV batteries and critical minerals. Automakers, including Ford, which plans to license Chinese battery technology, will need to reassess whether they can sell their cars with the tax break attached. The new rules are a victory for China hawks but may limit the number of models eligible for the credit, potentially slowing down EV adoption in the US.