A series of national security experts and former U.S. officials are sounding the alarm that Chinese government-backed companies could exploit a workaround to benefit from taxpayer-funded electric vehicle (EV) subsidies in the Inflation Reduction Act (IRA).

The stark warning comes a week after Ford, the second-largest automaker in the U.S., announced it would partner with the massive Chinese tech company Contemporary Amperex Technology (CATL) to build a new EV battery plant in Michigan. As a result of the agreement, CATL could potentially benefit from taxpayer subsidies earmarked in the IRA which was intended to strengthen domestic supply chains.

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