U.S. Targets Chinese EVs with New Security Measures


The U.S. is investigating China-made connected cars, potentially making it more difficult for Chinese electric vehicles (EVs) to enter the American market, citing national security reasons. Experts suggest that this move is an additional measure to sideline Chinese EVs, reflecting protectionist motives. The Inflation Reduction Act of 2022 will disqualify EVs with battery components from certain foreign entities, including China, from tax credits starting in 2024. China has responded by initiating dispute-settlement proceedings at the World Trade Organization against the U.S. for discriminatory subsidies. The current 27.5 percent tariff on Chinese vehicles also hinders their U.S. market entry, and there's speculation that former President Trump's proposal for a 100 percent tariff could impact Chinese EVs manufactured in Mexico. Critics argue that these actions are more about maintaining a competitive edge than actual national security.

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