China Accuses Biden Of Breaking International Trade Rules By Blocking Chinese Batteries

“By establishing ‘glass barriers,’ the US is doing more harm than good to the development of EV technologies and the industry more broadly,” he added, saying that these steps would “seriously disrupt international trade and investment.”

The new restrictions are already having an impact on the Ford Mustang Mach-E, which the Blue Oval says will most likely not meet these new sourcing regulations that take effect on January 1.

Dan Marks, a research analyst for energy security at Royal United Services, agrees that China’s position of control over global battery supply chains is cause for concern, but he feels current steps may be insufficient, saying that he’s “not sure the measures the EU or the US are considering match the scale of the risk.” Both sides fear a flood of Chinese EVs, and Marks fears that without the right strategic approach, industries in Europe and the US may not survive.

What the World Trade Organization makes of all this remains to be seen, but tensions are rising.