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Biden’s Green Subsidies Fueling Chinese Economy

Posted on Saturday, May 4, 2024
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by Ben Solis
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19 Comments
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joe biden and xi jinping, chinese president

Nearly two years since passage of President Joe Biden’s misnamed “Inflation Reduction Act” (IRA), Americans have seen little in the way of inflation reduction from the bill, while Chinese entities have lapped up the legislation’s lucrative subsidies for so-called “green energy.”

According to an informational bulletin from the Chinese Communist Party which I reviewed, CCP leaders were overjoyed upon passage of the IRA two years ago, calling it a “mountain of gold.” They believed that the taxpayer-funded subsidies in the bill would be a major boon for Chinese companies, which control an outsized share of the green energy market.

In total, according to Goldman Sachs, the actual cost of IRA subsidies is expected to be around $1.2 trillion between 2022 and 2031 – more than three times what the bill’s supporters initially claimed. That’s an enormous pool of money which provides ample motivation for Chinese firms to go to extreme lengths to take advantage of it.

One of the biggest areas of concern is solar panel production. China currently produces nearly 80 percent of the world’s solar panels, while the United States produced just under 2 percent in 2023.

According to a report from the Wall Street Journal earlier this year, “China’s solar giants are building their factories inside the U.S.” to take advantage of subsidies in the IRA.

“China-based companies are behind nearly a quarter of the roughly 80 gigawatts in new solar-panel capacity that has been announced since that legislation,” the Journal reports. “That positions them to be big beneficiaries of government subsidies as well—as much as $1.4 billion a year collectively if the panel factories announced so far are built, according to Journal calculations.”

Jeff Ferry, the Chief Economist for the Coalition for a Prosperous America, has further estimated that CCP-linked entities could siphon away up to $125 billion in taxpayer-funded subsidies thanks the IRA and other laws enacted by the Biden administration.

The severity of the situation was underscored by a recent urgent appeal from the American Alliance for Solar Manufacturing Trade Committee to President Biden. They have called for more strict protective tariffs on solar panels and solar panel materials from Asia, with Tim Brightbill, the group’s attorney, emphasizing that the U.S. solar manufacturing industry is “undoubtedly” in a “very precarious position.”

Chinese dominance of battery production for electric vehicles is another major opportunity for Chinese firms to take advantage of U.S. subsidies. China currently controls almost two-thirds of the world’s lithium processing capacity, 75 percent of its cobalt capacity, and 99 percent of its graphite capacity, all necessary materials for EV batteries.

While the Inflation Reduction Act is supposed to exclude any “Foreign Entity of Concern,” including companies with close links to Beijing, in practice this has not been the case. By forging one-sided partnerships with American companies, CCP-linked firms such as CATL and BYD have been able to find loopholes in the law to vacuum up the subsidies and tax credits.

A major Chinese wind turbine maker is also considering establishing American production and research plants. Ten Chinese wind equipment producers already have offices in the U.S.

China’s aggressive moves to use the IRA’s subsidies as leverage to gain an advantage in its economic competition with the United States are another obvious sign that the CCP is weaponizing Biden’s ideological obsession with bringing about a “green revolution” against the American people.

Economics Professor Gianluca Anselmetti, a former advisor on Asian affairs for the Italian Christian Democracy party, told me that China’s efforts to take advantage of U.S. green energy subsidies are part of an “escalation of the CCP’s economic war against the West, with a particular focus on America.”

“The United States is not China’s friend but rather its target, and this is a reality that must be constantly kept in mind,” Anselmetti continued. “They are leveraging U.S. subsidies and other opportunities to dismantle America’s manufacturing base, to weaken you.”

“The U.S. president looks as if he cannot see this sufficiently clearly,” he added.

The United States may thus be facing a completely self-inflicted economic crisis as it hands a major opportunity to its greatest geopolitical rival.

On top of it all, the supposed justification for these giveaways— an allegedly looming “climate catastrophe” – is motivated by left-wing dogma rather than scientific fact. As the late Dr. Tim Ball often said, the idea that human-caused climate change poses an imminent and existential threat to humanity is “the biggest deception in history.”

This lie, Dr. Ball predicted in a 2010 interview with me, is not just a matter of scientific debate. It has significant financial implications. “This lie is going to make a lot of people a lot of money,” he said, pointing toward the potential exploitation of climate change alarmism for financial gain.

That prediction is now being proven accurate today – and the American people will likely suffer as a result.

Ben Solis is the pen name of an international affairs journalist, historian, and researcher.

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PaulE
PaulE
1 month ago

The Democrat Party has been in love with the Chinese Communist Party for decades. Same goes for the old Soviet Union before it finally collapsed. Socialists and Marxists the world over just tend to have a mutual love fest for each other, so it shouldn’t be unexpected that the Democrat Party, which is America’s Defacto socialist and communist party at this point, bends over backwards to aid China at every turn. I hope none of this is surprising to anyone, as its been the worst kept secret for decades. The reason the Democrat Party adores the CCP is the unlimited power and control the CCP has over its own people. It’s literally what the Democrats want to impose here.

For many Democrats in both Washington and in academia, the CCP is the blueprint for their vision of how the Democrat Party wants to rule the United States. Have you ever listened to how Bill and Hillary Clinton, Obama and literally dozens of members of both administrations have spoken about how wonderful they think the CCP runs China in various public speeches over the years? That Biden and his administration should constantly bend over to aid China the same way both Clinton and Obama did shouldn’t come as any great surprise or shock, if you’ve been paying any sort of attention of the last 35 years.

To defeat one’s enemy, you need to both understand how your enemy thinks and acts in order to effectively counter them. Far too many Americans still apparently can’t see the forest for the trees in terms of how deeply imbedded the CCP has its supporters and enablers operating in plain sight within the United States government. It also doesn’t help that a significant percentage of the American public keeps voting for America’s socialist and Marxist party each election cycle. There is no danger of China’s economy or government imploding upon itself any time soon, as long as the United States keeps running to its aid every time the communist regime in China runs into problems. We desperately need a better informed and more intelligent American electorate before we finish committing national suicide.

Lisa
Lisa
1 month ago

What if all this time Biden is playing the ignoramus- that he just dies whatever he wants b’cuz he thinks no one will call him out (just like not being charged for clearly having documents he should never have had)? He is like free to go against the Supreme Court with no reprimands!! And is just so ANTI-American….its just so insane what he gets away with.

David Millikan
David Millikan
1 month ago

No surprise since Dictator Beijing biden has supported Communist China over America’s Energy Independence. Even his Economic Advisor has ZERO Economic education.
Yet, Dictator Beijing biden still keeps giving our Money and Jobs to Communist China.
Another reason why I am Voting for President Trump. With President Trump this would NEVER happen because he puts the United States FIRST.

Jeff
Jeff
1 month ago

We see this, we know it’s happening. But the average American is so easily dumbfounded by life as to ignore the danger until it’s too late late. Very sad… glad I’m older and won’t have to deal with it.

NeilRK
NeilRK
1 month ago

Now we understand why Biden won the 2020 election by any means necessary. He was committed in advance to shut down the fossil fuel industry and convert to green energy. He had to become president to do this or else. He had an offer he could not refuse.

invictus
invictus
1 month ago

The widely known corrupt Ukraine and the CCP are entities where Sly Joe gets his money from.

Rich
Rich
1 month ago

Just more money for Joe and Hunter. Maybe someday they can apply for asylum in China. If WE are lucky.

Bacon Nivison
Bacon Nivison
1 month ago

Pedo-Joe administering to the will of his bosses, Xi Jinping, George Soros, Володимир Зеленський. Americans bending over and spreading their cheeks, millions planing to vote for this traitor to continue his pRESIDENCY for another term.

CarolynCarolynatthesea@icloud.com
1 month ago

I keep looking unsuccessfully for Marc Levine’s offer for membership. Can you help me locate it? Thanks. I am [email protected]. Hey, I’m trying to send this in. Can you help me?

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