Madam Speaker, pursuant to House Resolution 1430, I call up the bill (H.R. 7980) to amend the Internal Revenue Code of 1986 to exclude vehicles the batteries of which contain materials sourced from prohibited foreign entities from the…
Madam Speaker, pursuant to House Resolution 1430, I call up the bill (H.R. 7980) to amend the Internal Revenue Code of 1986 to exclude vehicles the batteries of which contain materials sourced from prohibited foreign entities from the clean vehicle credit, and ask for its immediate consideration in the House.
Madam Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and submit extraneous material on the bill under consideration.
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise in support of the End Chinese Dominance of Electric Vehicles in America Act introduced by my good friend and Ways and Means colleague, Mrs. Carol Miller of West Virginia.
For years, the Chinese Communist Party has been doing everything it can do to dominate the electric vehicles market from the critical minerals needed to build EV batteries to the vehicles themselves.
Through forced labor practices, market distorting subsidies, and illegal trade mechanisms, China for years has manipulated the global marketplace for electric vehicles and their components. Instead of using the critical minerals in our own backyard to compete, the Biden- Harris administration has put an effective ban on recovering those materials and minerals in the U.S., furthering China's competitive advantage.
To make matters worse, pushed by their radical environmentalist base, the Harris-Biden administration is now using American taxpayer dollars to further China's dominance of the EV market.
When Vice President Harris cast the deciding, tiebreaking vote for the inflation expansion act, she and every Democrat in Congress handed a massive gift to the Chinese Government and its cronies.
While the letter of the law, as written by Senator Manchin, states these tax handouts are off-limits to foreign entities of concern like China, the Harris-Biden administration wrote ridiculously weak implementation regulations that every Chinese businessman should love.
The foreign entity of concern regulations for the inflation expansion act's EV credits, put out by the Department of the Treasury, are insulting. They are insulting to every American who cares about national security and who doesn't want to see their tax dollars flow to China.
One has to ask: Why not copy the exact same regulations that the Department of Commerce put out when implementing the semiconductor grants in the Chips and Science Act?
If they were good then, why not now?
If the Harris-Biden administration was concerned enough about China accessing U.S. tax dollars that they wrote language prohibiting any Chinese national from having a 25 percent stake in a U.S. company receiving grants, then why not do the exact same thing here?
Why, instead, write a massive implementation loophole that allows any Chinese billionaire with unofficial ties to the Chinese Communist Party to receive U.S. taxpayer subsidies?
The answer is simple. The current occupants of the White House are conflicted. They are conflicted between pretending to be tough on China and being responsive to the radical environmentalists who control their party.
It is time we put the brakes on giving taxpayer money to Chinese billionaires and the Chinese Communist Party.
When Democrats controlled Washington, they opened the door for China to take billions from hardworking taxpayers.
Under Republican leadership of the House of Representatives, we are fighting back on the side of American taxpayers and for the security and prosperity for our Nation, not for the Chinese Communist Party.
This legislation shuts down the loopholes that the Harris-Biden administration have created that allow Chinese billionaires and manufacturers to profit from American taxpayer dollars.
America's working families should not be forced to subsidize a nation whose decades of unfair trade practices and government subsidies have led to lost jobs, shuttered factories, and hollowed-out communities right here at home.
I urge my colleagues to support this legislation and join me in telling China that the days of fleecing American taxpayers are over.
Madam Speaker, I urge all my colleagues to support this legislation, and I reserve the balance of my time.
Madam Speaker, I yield such time as she may consume to the gentlewoman from West Virginia (Mrs. Miller).
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, the language from this bill comes directly from the U.S. Department of Commerce. It is nothing new.
Democrats are accusing, as we just heard, Republicans of having hateful motives, that this bill codifies a standard set forth by their own administration, the Harris-Biden administration. If this language is xenophobic, that is an issue that should be taken up with President Biden's Commerce Secretary, Gina Raimondo.
What this language does do is recognize that the Chinese Communist Party's influence extends beyond government officials listed on government rosters. Its control over its people and economy is less transparent than in Western democracies. That boils down to the fact that Republicans think it is
our responsibility to make sure that taxpayer dollars are not being sent directly to our adversaries, while Democrats will spare no cost forcing everyone to drive an electric vehicle.
Madam Speaker, I yield such time as he may consume to the gentleman from Michigan (Mr. Moolenaar), the chair of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party.
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, the only time a surrender white flag is waved in this country to China is whenever the Democratic Party that is controlled by the environmentalists will not allow Americans to use their own critical minerals and natural resources in this country for the products that we should deliver.
Banning the opportunity for Americans to be able to mine our own critical minerals is what empowers China, is what surrenders the flag to China.
Until the Democratic Party pushes back at the environmentalists that control them, the American people will suffer and the Chinese will benefit.
For my colleagues on the other side of the aisle who continue to claim that the 2017 tax relief only went to the wealthy, I would like to remind them that the Trump tax cuts applied across the board and mostly went to individuals and families. In fact, if those tax cuts expire next year, 70 percent of the tax increases will fall on households earning less than $500,000 a year. Let's contrast this with Democrats' green energy welfare.
Madam Speaker, I include in the Record this analysis from the Joint Committee on Taxation showing that big corporations with more than $1 billion in sales are receiving over 90 percent of special interest electricity subsidies like those in the inflation expansion act, which Vice President Harris was the tiebreaking vote to become law.
Congress of the United States,
Joint Committee on Taxation,
Washington, DC, March 31, 2023.
Memoradum
Tentative Energy Credits by Industry
This memorandum is in response to your request for data on
claims for certain energy credits by industry, including
credits claimed by management companies. Below we report the
tentative claims for credit under Code section 45, the credit
for electricity produced from certain renewable resources,
and the tentative claims for credit under section 48, the
energy investment credit, by C corporations for the 2019 and
2020 tax years. The amounts reported are the tentative claims
for credit before any limitation that the taxpayer might face
and before any audit adjustment that might occur. For each of
section 45 and section 48 we report the dollars of credit
claimed by industry using the North American Industrial
Classification System (``NAICS'') code level. Presenting
these data at a finer level of detail potentially would
create concerns of disclosure of information specific to
taxpayers. For example, for section 45 we removed 2020 data
for the wholesale and retail trade industry as the sample
size became too limited.
Madam Speaker, big banks received three times more benefits from these tax credits than any other industry.
Madam Speaker, I yield such time as she may consume to the gentlewoman from New York (Ms. Tenney).
Mr. Speaker, I yield myself such time as I may consume.
I could not disagree more with the prior comments. In fact, the best way to define my opinion of the prior comments would be to justify something we use where I come from. I come from the Ozark Hills, and we refer to that as hogwash because this bill right here will actually protect American autoworkers instead of Chinese autoworkers.
It is delusional to think any other thing because, if you are subsidizing the Chinese and not the American resources, the American manufacturer and the American worker lose.
Mr. Speaker, since the prior speaker is actually from the State of Michigan and Michigan has had a lot of conversations about a company that is coming in called CATL, that is a Chinese battery company that has partnered with Ford. They partnered with Ford, even though it is a Chinese battery company, to get these resources.
Mr. Speaker, I include in the Record this article reporting that the founder of CATL, that leading Chinese battery company, said: ``CATL's partnership with Ford Motor on an electric vehicle battery plant in the U.S.,'' which is in Michigan, ``will not be affected by the White House's new rules on Chinese involvement in such projects.''
He also continued in this and said: ``The plant structure was designed under the definition of the foreign entity of concern, so there will be no impact''--that there will be no impact--``on further implementation.''
With these EV handouts, China wins, and the American manufacturer and the American worker lose.
[From Nikkei Asia, Dec. 7, 2023]
CATL Says Ford Project on Track Despite New U.S. Battery Rules
(CISSY ZHOU, Nikkei staff writer)
Hong Kong--CATL's partnership with Ford Motor on an
electric vehicle battery plant in the U.S. will not be
affected by the White House's new rules on Chinese
involvement in such projects, Zeng Yuqun, the founder of the
Chinese battery giant, told Nikkei Asia.
``The plant structure was designed under the definition of
the foreign entity of concern (FEOC), so there will be no
impact on further implementation,'' Zeng said.
In February, Ford announced it would start producing low-
cost lithium-ion batteries by 2026 at its plant in Michigan
using technology licensed from CATL, the world's biggest
maker of EV batteries.
The move has drawn fire from U.S. lawmakers over concerns
that American subsidies and grants under the U.S. Inflation
Reduction Act and the Bipartisan Infrastructure Law would
flow to a Chinese entity.
Last week, the Biden administration proposed new guidelines
regarding a concept known as a foreign entity of concern
(FEOC). The guidelines are aimed at addressing what
Washington sees as America's overreliance on EV batteries
manufactured in China--a powerhouse in the field, commanding
significant control of various parts of the supply chain. Six
of the world's 10 largest EV battery manufacturers are
Chinese.
Under the new rules, which take effect in January, a joint
venture would be classified as an FEOC if a company from one
of four designated countries--China, Iran, North Korea and
Russia--holds a stake of 25 percent or more, or if a company
entered into a licensing agreement with another entity that
entitles the latter to exercise ``effective control'' over
the production of the battery components. An FEOC would be
ineligible for tax credits and grants.
CATL, meanwhile, is continuing its research and development
push. On Thursday, it announced plans to establish its
international headquarters in Hong Kong and to set up an R&D
center in the city. The company currently has more than
18,000 researchers and over 22,000 patents, a number that is
increasing by more than 7,000 each year, according to Zeng.
The investment will be worth over 1 billion Hong Kong
dollars ($128 million) and create more than 500 jobs,
according to Hong Kong Financial Secretary Paul Chan.
With a global market share of 37 percent, CATL supplies
batteries to major automakers including Tesla, Volkswagen,
BMW and Nissan Motor.
Zeng, the founder, said CATL will intensify its development
efforts, particularly by establishing a strong R&D center in
Hong Kong. The products generated by the R&D center will be
patented, and CATL will license these patents for a fee.
Additionally, it can provide services to outside companies
for a fee, according to Zeng.
Mr. Speaker, I yield such time as he may consume to the gentleman from Texas (Mr. Williams), the chair of the Small Business Committee.
Mr. Speaker, I yield myself the balance of my time to close.
Mr. Speaker, Congress has a choice to make today: Do we stand with America's taxpayers, or do we follow the lead of the Harris-Biden administration and stand with the Chinese Communist Party? This bill will undo and block harmful policies that allow Chinese billionaires and manufacturers to pocket American taxpayer money.
We wouldn't have to be here today, stopping China from taking that money, if Vice President Harris had not chosen to cast the tiebreaking vote for the inflation expansion act. It significantly expanded tax credits for luxury vehicles and has been implemented to allow for loopholes and giveaways so that foreign entities of concern, along with the wealthy and the well-connected, are the ones who are benefiting.
For decades, China has used every morally and ethically questionable tool in its toolbox, including illegal practices, to gain an unfair advantage in key industries. It is doing the same exact thing with electric vehicles today.
Yet, the Biden-Harris administration thinks American taxpayers owe China a helping hand. Workers in auto factories, battery plants, miners in idle critical mineral mines, and everyday taxpayers will be the ones who pay the price, Mr. Speaker.
I hope that my colleagues on the other side of the aisle will join us in standing up for American workers, American manufacturers, and American taxpayers and vote ``yes.''
In the end, we are asking you to vote for what you said you were voting for in your own law just 2 years ago in the inflation expansion act. To do otherwise is to keep putting more taxpayer money into the pockets, Mr. Speaker, of Chinese billionaires and the Chinese Communist Party.
Mr. Speaker, I urge all my colleagues to vote ``yes'' on this legislation, and I yield back the balance of my time.