(Bloomberg) US investors who spent years fighting strict limits on their ability to invest in China scored a victory Wednesday when President Joe Biden released an order imposing only light curbs on the flow of money to the world’s second-largest economy.Most Read from BloombergEcuador Presidential Candidate Assassinated, Suspect Shot DeadFirst American City to Tame Inflation Owes Its Success to Affordable HousingRetirees Face $17,400 Cut to Social Security Benefits in 2033Everyone Wants to W
The executive order, aimed at slowing Beijing’s military development, represents the first time Washington has exerted broad oversight on American business overseas.
Chinese battery materials firms are ramping up investment in South Korea, announcing projects worth at least $4.4 billion this year to try to meet U.S. electric vehicle (EV) tax credit rules aimed at lowering reliance on China's supply chains. Five battery materials plants worth about 5.6 trillion won ($4.4 billion) in total have been announced this year by Chinese companies and local partners in South Korea, including battery firms POSCO Future M and SK On, according to a Reuters review of project announcements. The deals follow the introduction of the U.S.'s Inflation Reduction Act (IRA), which requires at least 40% of the value of critical minerals used in an auto battery to be sourced from the United States or a free trade partner to qualify for a $3,750 tax credit per vehicle.
Chinese firms are investing in South Korea's battery industry to gain exposure to the U.S. market, leveraging Korea's free-trade agreement with the U.S. and potential tax breaks under Biden's Inflation Reduction Act. Over the past four months, Chinese and Korean companies have announced $4 billion of investments in five new battery factories in Korea, with talks ongoing for more projects, Bloomberg reports. Also Read: Tesla Supplier CATL Prepares To Monetize EV Batteries Under M3P Technology As