The Group of 7 nations are taking a page out of China’s playbook to counter its economic power. The wealthy democracies are investing trillions of dollars in a new climate-friendly energy economy, while also imposing restrictions on the export of technology to China. The US has led the way with its Inflation Reduction Act, which has spurred a wave of newly announced battery plants, solar panel factories and other projects. The US has also signed deals with Japan and the EU to allow battery materials made in those countries to qualify for the benefits of the Inflation Reduction Act. The G7 is also discussing further restrictions on certain kinds of Chinese chip technology, including a likely ban on venture capital investments. The goal is to reduce reliance on Chinese manufacturing and to help their own companies compete in a new energy economy.
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