, Columnist
The Holes in America’s China-Style Industrial Policy
The law is too focused on shutting out Beijing, which will ultimately hold the US back from expanding its own supply chain.
The value chain.
Photographer: Emily Elconin/BloombergThis article is for subscribers only.
US attempts to take on a Chinese-style industrial policy have left the world’s electric vehicle battery makers in a state of anxiety.
Signed into law last month, the Inflation Reduction Act, or the IRA, aims to overhaul electric vehicle tax credits and is designed to ensure that final assembly of powerpacks and EV happens in North America, while keeping Chinese materials for batteries out of the supply chain. To do this, the policy has addressed demand and supply by putting in place new incentives for advanced domestic manufacturing and revamping existing ones for buyers.