US House Panel Probes Treasury Over Federal Tax Credits for Chinese Companies

A U.S. House panel on China asked the Treasury to clarify whether it would endorse U.S. taxpayer funding to Chinese green energy companies.

The rural Michigan community of Green Charter Township was to become home to a Chinese EV battery plant. Courtesy of Jim Chapman

A U.S. House panel on China asked the Department of Treasury to clarify whether it would endorse U.S. taxpayer funding for a Chinese green energy company over its battery plant in Michigan.

The inquiry comes as the Treasury formulates its guidance on applying the term “foreign entity of concern” to incentives under the Inflation Reduction Act (IRA), a new law partly aimed at reducing U.S. dependence on China for renewable energy.