This approach of the United States makes Australia and South Korea uneasy!

　　China News Service, February 19. According to a report by the "Australian Financial Review" on the 18th, due to concerns that identifying Chinese elements in the supply chain is "difficult" and "troublesome", the Australian government has asked the United States to clarify that it "will cooperate with China" "Companies with significant ties to North Korea, Iran or Russia are excluded from receiving subsidies for critical minerals."

　　According to reports, this request is regarded as a response to the Foreign Sensitive Entity Guidelines (FEOC) of the "Inflation Reduction Act" announced by the United States in December 2023. The guidance prohibits companies with significant ties to China, North Korea, Russia or Iran from receiving subsidies provided by the Inflation Reduction Act.

　　The report pointed out that the above-mentioned four countries are regarded as "foreign entities of concern". Any company that processes minerals in these four countries, or has 25% shares held by any country, will be excluded from the scope of subsidies. At the same time, the U.S. government has also expanded the scope of restrictions to current or former senior party officials and their immediate family members in the four countries.

　　In a document submitted to the U.S. Department of Energy, the Australian government said: "Australia hopes that the United States will consider members of political parties who are not listed or may not be considered senior officials, but who are still affected or have influence on direct action." Provide further clarification regarding the assessment of these personnel.”

　　The Australian Financial Review stated that the United States’ “cold attitude” towards minerals processed in China has made Australia feel uneasy because more than 90% of the raw products in the country’s lithium industry are shipped to China for processing, and several of the largest lithium mines have also maintained There are more than 25% Chinese shares. Australian businesses may find identifying Chinese elements in their supply chains "difficult" and "cumbersome".

　　"Even with clear standards, it can be cumbersome for private companies to prove compliance in some circumstances," the Australian government said in its submission.

Data map: Australian Trade Minister Farrell.

　　Australian Trade Minister Farrell said in November 2023 that despite the United States' efforts to break its "monopoly" on China's key minerals, Australia will not close the door to Chinese investment in Australian projects. "We are not proposing any changes to (Chinese investment). To maximize our interests, we will always need foreign investment. That will not change."

　　The Australian Broadcasting Corporation (ABC) also pointed out in its analysis in November 2023 that Australia does need investment from China.

　　Reuters Asia commodities analyst Clyde Russell believes that it is difficult to find investment in high-risk projects such as mining. The Australian government has committed A$4 billion to a fund in 2023 to finance critical mineral projects and hopes to see Australia work with the United States to develop alternative supply chains for renewable energy products. In this regard, Russell said that this is "just a drop in the ocean" and that "only China" can provide funds for new mines in Australia.

　　The "Australian Financial Review" report also mentioned that South Korean automakers have also encountered the same problem. They believe that the relevant definitions in the US bill are vague.

　　Korea International Broadcasting Station (KBS) once pointed out that the US "Inflation Reduction Act" includes content related to electric vehicle promotion subsidies, restricting the use of battery parts and minerals produced in China and other countries, and the nature of containing China is very obvious. However, these measures also affect the Korean electric vehicle industry.

　　According to reports, the biggest and most critical part of the bill that has the biggest impact on South Korea is that electric vehicle subsidies are limited to vehicles that are final assembled in North America. Currently, the products sold by Korean car companies in the U.S. market do not meet this condition, which means that Korean-made electric vehicles will be excluded from the subsidies and sales will be affected.

　　The Korea Herald quoted observers as saying that these rules set by the United States will seriously affect South Korea’s electric vehicle industry, which relies on China’s supply chain.

　　Yonhap News Agency reported in January 2024 that South Korea called on the United States to enact "reasonable" regulations because they found it "difficult" to "significantly reduce dependence on China" as required by the United States.