Foreign Companies Reap Rewards of America’s Green Movement

July 25, 2023

The 2022 climate law was sold as a game-changer for the United States, aimed at bolstering the nation’s clean-energy industries through a substantial torrent of government subsidies. However, one concerning aspect has emerged since its implementation – the lion’s share of the benefits have been given to foreign companies.

According to the Wall Street Journal,

“The Inflation Reduction Act has spurred nearly $110 billion in U.S. clean-energy projects since it passed almost a year ago, a Wall Street Journal analysis shows. Companies based overseas, largely from South Korea, Japan and China, are involved in projects accounting for more than 60% of that spending. Fifteen of the 20 largest such investments, nearly all in battery factories, involve foreign businesses, the Journal’s analysis shows. These overseas manufacturers will be able to claim billions of dollars in tax credits, making them among the biggest winners from the climate law. The credits are often tied to production volume, rewarding the largest investors.”

It is a shame that our government seems to favor overseas investments rather than investing in projects in the U.S. Most recently, the Department of Energy rejected an application for a grant to build a battery-component plant in Kentucky.  

“Microvast, a startup that was planning to build a more than $500 million battery-component plant in Kentucky, was named as a potential recipient of a $200 million grant from the Energy Department last year. The department later rejected the application. The move followed criticism from Republicans about the company’s ties to China, which include a China subsidiary that accounts for more than 60% of its revenue.” 

While Americans are feeling the direct cost of Biden’s Inflation Reduction Act with skyrocketing inflation, foreign companies are reaping the rewards. This is directly helping the Chinese economy, which continues to grow and threaten the United States economically and militarily. As the Biden Administration continues to push nonsensical green policies that are hurting the pocketbooks of Americans, remember that your money is going into the bank accounts of the Chinese Communist Party.