Genesee News

Steve Cortes, founder of the League of American Workers, has raised concerns regarding the House tax bill, stating that it leaves open dangerous tax loopholes benefiting Chinese companies linked to the Chinese Communist Party (CCP). This statement was made on Legacy Media.

"America should not be in the business of financing an enemy," said Cortes, President. "Unless the Senate takes action to fix this legislation, the American taxpayer will be on the hook for funding our foremost adversary. Ford has yet to disclose the details of this arrangement, despite threats of Congressional subpoena. The Senate must mandate no U.S. tax credits to any PRC-affiliated companies. None."

According to American Greatness, provisions in a pending tax bill could potentially allow federal funds to support Chinese-owned companies through green energy subsidies. Without stringent restrictions, U.S. taxpayer money might flow to Chinese firms that dominate sectors such as solar panel and battery manufacturing. The report highlights national security and economic risks associated with subsidizing strategic competitors.

The U.S. Energy Information Administration reported that as of 2023, over 75% of global lithium-ion battery manufacturing capacity was located in China, with companies like CATL and BYD leading production. This dominance raises concerns that U.S. green energy subsidies or tax incentives, if not carefully structured, could inadvertently benefit foreign producers through domestic partnerships or supply chains. Although the U.S. has begun developing domestic alternatives, it remains heavily dependent on Chinese inputs.

In February 2023, Ford Motor Company announced a $3.5 billion investment to build an electric vehicle battery plant in Marshall, Michigan, utilizing technology licensed from Chinese battery manufacturer CATL. The facility, named BlueOval Battery Park Michigan, is expected to commence production of lithium iron phosphate (LFP) batteries in 2026 and create approximately 2,500 jobs. Ford said that the plant would be operated by a wholly owned subsidiary, with CATL providing technology and expertise.

Cortes is a political strategist and commentator who heads the League of American Workers, a populist economic advocacy group. With over 25 years of experience in financial markets as a trader and strategist on Wall Street before transitioning into political commentary, he has also served as an on-air broadcaster for major news networks and was a senior advisor to President Donald Trump’s campaigns.