US probes Chinese involvement in manufacturing projects receiving tax incentives
Washington, June 5 (IANS) The Trump administration is investigating reports of continued Chinese involvement in US manufacturing projects receiving federal tax incentives, US Treasury Secretary Scott Bessent told lawmakers on Thursday, signalling heightened scrutiny of Beijing’s role in sectors Washington considers strategically important.
Bessent disclosed the review during a hearing before the House Ways and Means Committee after lawmakers raised concerns that some companies benefiting from US manufacturing tax credits may still rely on Chinese personnel and expertise despite restrictions intended to reduce dependence on China.
Congressman Darin LaHood, a member of the House Select Committee on China, said some manufacturers continue to depend on Chinese engineers and personnel linked to the Chinese Communist Party while operating facilities in the United States.
He said such arrangements could undermine the objective of transferring technological know-how and operational control to American companies.
In response, Bessent said the Treasury Department was actively monitoring the issue.
“We are polling the companies. We are asking for verification that this is not happening,” he told the committee.
He added: “Whenever we receive a report, we investigate it.”
The exchange centred on the 45X manufacturing tax credit, a provision designed to encourage domestic production and strengthen US supply chains in sectors viewed as critical to national and economic security. Lawmakers have increasingly pushed for safeguards to ensure federal incentives do not indirectly benefit Chinese entities.
Asked whether Treasury investigations had produced results, Bessent said oversight efforts had been “very robust” and pointed to broader actions taken by the administration to limit Chinese technology in sensitive areas.
“I can tell you it has been very robust,” he said.
Bessent cited recent federal measures involving Chinese technology, saying that “the FCC banned Chinese drones and routers” and referring to requirements that electronic systems in American vehicles not be connected to Chinese entities.
The comments reflect growing concern in Washington that Chinese firms and personnel could retain influence over key technologies even as companies establish manufacturing operations inside the United States. Both Republicans and Democrats have increasingly backed measures aimed at reducing dependence on Chinese supply chains, particularly in advanced manufacturing, clean energy, telecommunications and critical technologies.
–IANS
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