As the United States government continues to escalate its export controls on China, some car companies of the Republic of Korea that are dependent on Chinese battery materials are having a hard time. To this end, these companies have made submissions calling on the Joe Biden administration to relax its restrictions to allow them to purchase key battery materials from China. Tesla has also encountered similar problems. Due to the deadlock in battery production for its new Cybertruck, the US company had to turn to Chinese manufacturers for battery component support.

It is obvious that China plays an important role in the development of new energy vehicles. As China's new energy vehicle production and sales account for more than 60 percent of the world's total, it has ranked first in the world for nine consecutive years. In 2023, China's exports of power batteries hit 127.4 gigawatt hours, a year-on-year increase of 87.1 percent. The market size of China's power batteries has ranked among the top of the world for seven consecutive years. Among the top 10 power battery companies in the world in terms of vehicle installation volume, six are Chinese.

There is no doubt that China's power battery industry has multiple competitive advantages that are difficult to replace. The country has achieved independent production of almost all key raw materials of power battery production, such as cathode materials, anode materials, and electrolytes, forming complete power battery industry and supply chains.

China also dominates the core raw materials needed for battery production. Statistics show that in 2023, more than 80 percent of global shipments of key materials such as lithium battery electrolytes and separators came from China. The country's long-term and huge input in technological innovation has also become the key to success for Chinese companies in the industry. Currently, China holds 74 percent of the world's power battery patents. The development of China's power battery industry has greatly promoted the green and low-carbon transformation of the global automobile industry. China is by no means a threat, but an opportunity to the world.

It is ridiculous that some US politicians are trying to exclude Chinese batteries from the US electric vehicle supply chains. If Chinese power batteries are excluded from the supply chains of the US EV makers, that will markedly push up the price of electric vehicles for US consumers. What the handful of politicians are pushing for not only undermines market rules and harms US companies, but also makes the US people pay the bill.