China has added its voice to foreign critics of US tax breaks for new electric cars, calling them discriminatory.

The new health, climate and taxation legislation, known as the Inflation Reduction Act, includes tax credits of up to $7,500 for new electric vehicles if their batteries are made from critical materials mined or recycled in the US or its free trade agreement partners , and not from China, Russia, or other “foreign organizations of concern.”

It’s one of many measures and initiatives aimed in part at weaning the U.S. away from other suppliers of electric vehicle parts, particularly in Asia.

China is the world’s second largest producer of electric batteries and controls much of the processed materials, assembly of cells and components of electric vehicle batteries.

The European Union and South Korea have already criticized the tax breaks.

Originally published on F&I and showroom

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