United States probes Chinese involvement in manufacturing projects receiving tax incentives

Washington: The Trump administration is investigating reports that Chinese personnel and expertise may still be involved in US manufacturing projects receiving federal tax incentives. US Treasury Secretary Scott Bessent told lawmakers that the Treasury Department is reviewing claims that some companies benefiting from manufacturing tax credits continue to rely on Chinese engineers despite efforts to reduce dependence on China.

During a House Ways and Means Committee hearing, Congressman Darin LaHood raised concerns that manufacturers operating in the US may still employ personnel linked to the Chinese Communist Party. He warned that such arrangements could weaken the goal of transferring technology and operational control to American companies.

Bessent said the Treasury is actively monitoring the issue and seeking verification from companies to ensure compliance. “Whenever we receive a report, we investigate it,” he said, adding that oversight efforts have been “very robust.”

The discussion focused on the 45X manufacturing tax credit, which aims to boost domestic production and strengthen US supply chains in industries considered vital to national and economic security. Lawmakers from both parties have increasingly pushed for safeguards to prevent federal incentives from indirectly benefiting Chinese entities. (IANS)

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