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CONGRESS OF USA
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Agenda Item

Agenda Item A: U.S. Dependence on China in the Electric Car Industry

About the committee

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The U.S. Congress stands as the legislative branch of the federal government of the United States, embodying the principles of representative democracy and serving as a cornerstone of the nation's governance structure. Comprising two distinct chambers—the House of Representatives and the Senate-the Congress plays a pivotal role in shaping, enacting, and overseeing the nation's laws, policies, and priorities. More specifically, the Congress decides the legal framework governing various aspects of national life, ranging from economic policies to international relations.

Today, the Congress will be in session in order to discuss the burgeoning electric car market that represents a multi-trillion-dollar industry with profound economic implications. Especially, the dependence on China may result in trade imbalances, loss of jobs, diminished manufacturing capabilities, and reduced economic resilience. Moreover, China's subsidization policies and market dominance could further undermine U.S. market competitiveness and innovation. Then again, relying heavily on China for essential components, including rare earth minerals, batteries, and electric vehicle technologies, exposes the U.S. to supply chain vulnerabilities. Disruptions, trade tensions, or geopolitical factors could significantly impact the availability, cost, and accessibility of critical resources, thereby jeopardizing the U.S.'s ability to meet domestic demand as well as undermining its status.

 

Therefore, the U.S. Congress is expected to evaluate the extent and implications of U.S. dependency on China within the electric car industry, develop comprehensive strategies, policies, and incentives to bolster domestic production, research, and innovation. In addition to the national measures, strengthening alliances, partnerships, and collaborations with like-minded nations to diversify supply chains would be utilized to increase its market share within the industry.

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