The Biden administration has unveiled plans to exclude Chinese entities from receiving any of the generous tax credits available for investing in the U.S. electric vehicle (EV) supply chain.

Both the Bipartisan Infrastructure Law, which allocated $6bn of credits for batteries and the critical minerals required to make them, and the Inflation Reduction Act (IRA), which includes a subsidy of up to $7,500 for each new energy vehicle, explicitly exclude any "Foreign Entity Of Concern" (FEOC).

That term hadn't been defined until Friday, when the Department of Energy and U.S. Treasury confirmed it would apply to China, Russia, North Korea and Iran.

The administration is also proposing tough criteria, including a 25% ownership threshold, for determining whether a company is controlled by a FEOC.

Source:Reuter