Some US politicians seem to never tire of using "national security" as an excuse to unjustifiably suppress Chinese products, even though this self-defeating approach not only stands little chance of achieving its intended goals but risks undermining the US' own competitiveness in the global market.
This time, their sights are set on the electric vehicle (EV) battery industry. The US House of Representatives on Monday passed a bill that would bar the US Department of Homeland Security from purchasing batteries manufactured by Chinese companies, Bloomberg reported on Tuesday. Titled "the Decoupling from Foreign Adversarial Battery Dependence Act," the legislation specifically targets six Chinese companies - Contemporary Amperex Technology Co, BYD Co, Envision Energy, EVE Energy Co, Gotion High tech Co and Hithium Energy Storage Technology Co.
The bill is drafted as if it's really about safeguarding US national security. In reality, it is yet another manifestation of America's strategy to contain the development of China's technological advancement. It follows the same hackneyed pattern as previous attempts to suppress Chinese industries.
Historically, the US has gone after Chinese telecommunication companies and slapped high tariffs on Chinese photovoltaic and steel products, all on the grounds of "national security." This excuse has been severely misused. Whenever China makes strides in a certain sector, the US wields the "national security" stick, seeking to impede the development of Chinese industries through political means.
Evidently, the US objective this time is to suppress the rapid growth of China's EV battery industry. But will this containment strategy be successful?
The ascendance of China's battery industry is no fluke. It is the result of years of relentless efforts in technological research, industrial upgrading and supply chain integration. In 2024, China accounted for 78.6 percent of global shipments of lithium-ion batteries, according to data from research firm EVTank, clearly demonstrating China's accomplishments in the new-energy supply chain.
China has built a robust industrial ecosystem. From lithium mining to the production of cathode and anode materials, from separators to electrolytes, it has constructed the world's most comprehensive battery supply chain. This industrial clustering not only cuts production costs but also promotes technological innovation and industrial upgrading.
Moreover, China's battery industry benefits from a massive domestic market. As the world's largest market for new-energy vehicles (NEVs), China accounted for about 70 percent of global sales, with NEV production and sales both exceeding 10 million units in 2024. This huge demand provides continuous impetus and financial backing for innovation, thus creating a virtuous cycle.
In this context, the US automobile industry's procurement of Chinese batteries reflects the global division of industrial labor and market choices. Chinese manufacturers offer the US market a wide array of high-quality products at competitive prices.
The US suppression of Chinese battery companies under the excuse of "national security" is essentially an attempt to interfere with market choices through political means. However, this approach runs counter to economic laws and is unlikely to yield the desired outcomes. Chinese battery companies have established strong technological and cost advantages, making it difficult for US firms to catch up in the short term. Even with subsidies, replicating China's complete industrial chain and large-scale market is no easy feat.
More importantly, the reckless US attacks on Chinese products under the guise of national security will ultimately harm American consumers. For instance, after imposing tariffs on Chinese photovoltaic products, the prices of solar power generation equipment in the US market skyrocketed. Many US families, unable to afford the high costs, had to abandon the idea of installing solar equipment.
Similarly, suppressing Chinese batteries will mostly likely lead to supply shortages and increased costs for US EVs. Washington's game of suppressing Chinese industries one after another will ultimately prove futile. If the US persists in this counterproductive approach, it will only further erode its own global competitiveness.
