background image

Chinese companies use Biden’s climate law to expand their solar dominance

author image

By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: Chinese solar manufacturers, including Trina Solar, are capitalizing on U.S. tax incentives under Biden’s Inflation Reduction Act (IRA) to build large-scale facilities like Trina’s new Texas factory
This expansion aligns with Biden’s climate goals but raises concerns about Chinese control in the U.S. solar supply chain

🔭 The context: The IRA’s incentives were intended to boost U.S.-based clean energy manufacturing
However, Chinese solar firms, controlling 80% of global solar components, have responded by setting up
U.S. factories, benefiting from the tax credits and causing friction with American manufacturers facing cheaper competition

🌍 Why it matters for the planet: While the IRA accelerates clean energy growth in the U.S., reliance on Chinese firms might undercut U.S. energy independence goals
This dynamic challenges the vision of a U.S.-led clean energy transition by relying on international supply chains and potentially weakening local manufacturing

⏭️ What's next: U.S. lawmakers are pushing for restrictions on Chinese firms receiving IRA credits, while others argue that collaborating with Chinese companies could help scale solar production and lower costs
This debate may intensify with the upcoming 2024 election and could shape future amendments to IRA provisions

💬 One quote: “We have to have the enforcement to back it up so that those investments are not undercut by unfair and illegal trade,” - Tim Brightbill, of the American Alliance for Solar Manufacturing

📈 One stat: Trina Solar’s Texas factory alone could receive $1.8 billion in U.S. tax subsidies over the next seven years

Click for more news covering the latest on renewable energy

Did you enjoy this illuminem voice? Support us by sharing this article!
author photo

About the author

illuminem's editorial team - providing you with concise summaries of the most important sustainability news of the day.

Follow us on Linkedin, Twitter​ & Instagram

Other illuminem Voices


Related Posts


You cannot miss it!

Weekly. Free. Your Top 10 Sustainability & Energy Posts.

You can unsubscribe at any time (read our privacy policy)