China has decides to file complaint against US for making discriminatory policies. The complaint has to be heard by World Trade Organization. The country has claimed that some policies, made by United States of America, refrain buyers from subsidies and tax relaxations. China has accused US for making policies that create unhealthy competition favoring non-China countries.
China says that the policies are discriminatory. US car buyers are not eligible for tax credits of USD 3,750 to USD 7,500, if critical minerals or other battery components were made by Chinese, Russian, North Korean or Iranian companies.
Earlier around 50 percent of vehicles purchased in US were eligible for the credit. From January 1, only 13 of the more than 50 EVs on sale in the US are eligible for the credits.
The “China Plus One” strategy is where companies look to diversify their manufacturing beyond China. This approach has been around for a while, and now we’re seeing its impact on China itself. Multinational corporations and other countries are seeking alternative production locations due to factors like cost, risk, and being closer to growing markets.
Currently six out of ten of all rare earth elements used in electronic devices are produced by China. While China dominates processing of many critical minerals, lithium is a different story. China only holds a 13 per cent share, with Australia 52 percent and Chile 22 per cent leading global production.
Lithium nowadays is used to produce secondary batteries for smartphones, laptops, and electric vehicles.
China’s business is not solely dependent on the extraction but it is dominant when it comes to processing operations. The country’s share of refining is around 65% for cobalt, 35 percent for nickel and 58% for lithium.
Now, you might be able to guess the simple logic for why China is worried. It is a big shopkeeper and if the shopkeepers is refrained from selling it would be hard for him (or it) to survive.
This whole thing reminded me of a recent news piece, reported by Reuters about China limiting its graphite exports. In October last year, Chinese authorities announced to stop feeding the world with graphite used as anode material in batteries.
It had also somewhat forced exporter to obtain hard to gain permits for gallium and Germanium Product at the time of Semi conductors shortage. This show the dualist nature of human as they seem to be happy when the salt is not over in their plates. Also, people tend to cry out loud when the fire is in their house. China has decides to file complaint against US which shows it never underestimates buyers no matter how much monopoly it enjoys in the global market.
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