Chinese firms eye Morocco as way to cash in on US electric vehicle subsidies

TANGIERS, Morocco — After the United States passed new subsidies designed to boost domestic electric vehicle production and cut into Beijing’s supply chain dominance, Chinese manufacturers began investing in an unlikely place: Morocco .

Critics say the rules are a giveaway to China and will extend its EV dominance. The Biden administration says the rules pave the way for billions in investment in EV manufacturing in the United States.In Morocco, a largely agrarian economy where the median income is $2,150 a month, giant industrial parks full of American, European and Chinese component makers have sprung up in the rural outskirts of Tangiers, Kenitra and El Jadida.

“To ride the wave of the IRA, you have to execute fast and comply with its regulations,” he said in an interview before the U.S. finalized its rules. “We have flexibility to be able to comply with all the changes in interpretation or rules.” Abdelmonim Amachraa, a supply chain expert who previously worked in Morocco’s Ministry of Industry and Trade, said Morocco was profiting from its “ability to coexist when a link can’t be found between China and the United States.”

“Under the Biden administration’s electric vehicle regulations, America’s working families will have to watch their hard-earned tax dollars go to line the pockets of Chinese billionaires and businesses with links to the Chinese Communist Party,” U.S. Rep. Jason Smith, a Missouri Republican, said of the new guidelines.

“There is not going to be a lithium ion battery supply chain that does not have Chinese influence for a long time,” Berry said.The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’sIvanka Trump breaks silence on father’s conviction in hush money case

Free Trade Agreements Chinese Manufacturers United States Supply Chain China Inflation Reduction Act Investing President Joe Biden Subsidies China

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

World Cup Host Morocco Plans Derivatives to Help Fund SpendingMorocco plans to start derivatives trading this year as the kingdom expands its capital markets to help finance a surge in infrastructure spending and preparations to co-host the football World Cup in 2030.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

China Is Building Europe Battery Supply in Morocco, VW Unit SaysChina is building a battery supply chain for Europe in Morocco, as the continent struggles to develop its own industry to feed electric-car manufacturing, PowerCo’s operations head said.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Drought Gripping Morocco Is Bad Omen for Global Food SuppliesThe nation’s unrelenting dry spell is ushering in record wheat imports and risking fruit and vegetable sales abroad.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Chinese Firms Meet Malaysian Officials on US Tariffs, FT SaysChinese executives have been meeting top government officials in Malaysia to seek assurances they can avoid US tariffs if they relocate manufacturing to the country, according to a report by Financial Times.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

EU Agrees Russia Sanctions Hitting LNG Shipments, Chinese FirmsThe European Union has approved a new package of sanctions over Russia’s invasion of Ukraine, seeking to tighten the enforcement of restrictions by widening the scope of measures to its network of accomplices and hit Moscow’s revenues.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Chinese firms reserve right to request investigations into EU pork, dairyChinese firms reserve the right to request anti-subsidy and anti-dumping investigations into European dairy and pork imports, the country's commerce ministry...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »