A bipartisan pair on the House Ways and Means Committee argue that offering more generous competitive needs limitations under the Generalized Systems of Preferences benefits program will help importers shift supply chains out of China, and they recently introduced a bill that would reform the CNL program.

China's stranglehold on minerals used in electric vehicle battery-making, and their head start on making quality, affordable EVs makes U.S. and European firms anxious, panelists said at a Georgetown Business School webinar on the future of auto value chains.

Automakers will have to track almost every battery component for electric vehicles -- including cathode electrodes, anode electrodes, solid metal electrodes, separators, liquid electrolytes, and solid state electrolytes that go into battery cells -- if they want consumers to be able to benefit from the full $7,500 tax credit for electric vehicles.

A House Oversight Subcommittee on Economic Growth, Energy and Regulatory Affairs hearing focused on the need for more domestic mining of critical minerals, but administration witnesses noted that imports -- and subsidizing processing of domestically mined minerals -- are just as essential to uninterrupted supply.

The Commerce-led pillars of the Indo-Pacific Economic Framework -- tax and anti-corruption, climate and supply chain -- are all completed or all-but-completed, but the U.S. chose not to talk about which parts of the trade pillar have reached agreement during a round of IPEF negotiations in San Francisco. The administration also is making no projections about when the trade pillar, led by the U.S. trade representative, might be completed.

A National Security Council representative pitched the Indo-Pacific Economic Framework as a "modern economic engagement," different from past free trade agreements, and one that will "reduce supply chain dependencies in a way that brings prosperity to all involved."

The House Select Committee on China's leaders said a recent announcement that China would restrict exports of graphite, which is used in electric vehicle batteries, shows how urgent it is to pass legislation to respond to China's actions.

Higher tariffs on some Chinese goods if Congress strips China of its permanent normal trade relations status would not be offset by moving production to other countries, and would instead increase prices for U.S. consumers, hurting low-income households most, according to a study released last week by the National Retail Federation.

The EU's top trade official, Valdis Dombrovskis, said EU and U.S. negotiators haven't given up on their Oct. 31 deadline to address both non-market overcapacity in steel and aluminum and ways to privilege trade in cleaner metals.

The EU has received assurances that Beijing will grant export licenses for shipments of gallium and germanium to European businesses despite the restrictions China placed on exports of the two metals in August (see 2307050018), European Commission Vice President Valdis Dombrovskis said this week. Dombrovskis also said the bloc is looking to sanction additional Chinese firms that may be skirting restrictions against Russia and is hoping to ensure its upcoming supply chain due diligence regulations don’t impose excessive compliance burdens on EU companies.