The U.S.-China Economic and Security Review Commission reported that China’s state-supported push into electrification is reshaping global energy markets and raising potential national security concerns for the United States.
In its statement, the commission said the issue has implications for both economic competition and supply chain resilience, particularly as U.S. industries rely on imports tied to Chinese manufacturing.
Its report found that China has used industrial policy to become a dominant producer of batteries, electric vehicles, and solar panels, contributing to the decline of solar manufacturers in the United States and the European Union and creating similar pressures for foreign producers of electric vehicles and wind turbines.
The report also highlighted the extent of U.S. reliance on Chinese components, noting that China supplies more than half of U.S. imports of battery energy storage systems and low-voltage transformers. It further stated that China began leveraging U.S. dependence on critical mineral refining capacity in July 2023 and could expand that leverage to other key manufacturing sectors.
In a related development, the U.S. Department of Defense designated Contemporary Amperex Technology Co. Limited (CATL) as a Chinese military company under Section 1260H of the National Defense Authorization Act in January 2025.
CATL technology is used in Ford Motor Company’s BlueOval Battery Park in Marshall, Michigan, under a licensing agreement.
The U.S.-China Economic and Security Review Commission is a bipartisan congressional body established in 2000 to monitor and assess the national security and economic implications of the relationship between the United States and China.
