Diana Furchtgott-Roth, Andrew Hale
China is seeking to ensnare the United States in a dependence trap of renewable energy. America must avoid becoming ensnared in these “Chinese handcuffs” and chart a responsible path that ensures plentiful, reliable, reasonably priced power based on proven technologies for all Americans for decades to come, which is fully in America’s capacity to achieve. Yet, the Biden-Harris Administration’s own policies have aided China’s efforts by undermining American energy security and independence. The Administration is using regulations and laws that encourage the purchase of Chinese-sourced renewables, electric vehicles (EVs), batteries, and critical minerals. At the same time, the Administration is discouraging the development and use of domestic supplies of oil and natural gas.
As is laid out in this Special Report, a massive overhaul of these policies should be a top priority for the next conservative U.S. Administration working in conjunction with Congress. U.S. national security policy should support the following capabilities to meet American needs: (1) exploring and extracting key resources in the United States, in partner countries, and in international waters; (2) transporting and processing or refining those resources in a way that is shielded from leverage by U.S. adversaries; (3) consuming energy, and using associated technologies, that are shielded from manipulation by U.S. adversaries; and (4) shielding, as much as possible, U.S. allies from energy-related leverage and manipulation.
The “Buy America” policies included in the Biden-Harris Inflation Reduction Act (IRA), for example, are a Trojan horse that allows Americans to use tax credits to lease EVs without requisite domestic-content requirements. Regulations from the U.S. Department of the Treasury have made this legal.
“Buy America” provisions have also not prevented American companies from collaborating with Chinese companies to launch domestic battery companies. Ford is doing this in Michigan with the Chinese battery company Contemporary Amperex Technology Co., Limited (CATL). » Read More
https://www.heritage.org/china/report/extricating-america-its-chinese-handcuffs