China may flood the U.S. electric-vehicle market with low-cost choices, Vitality Secretary Jennifer Granholm warned Wednesday, weeks after President Joe Biden raised related considerations.

“We’re very involved about China bigfooting our trade within the U.S. whilst we’re increase now this unimaginable spine of producing,” Granholm mentioned throughout a dialogue panel at an Axios occasion.

China is being perceived as a menace to the U.S. auto trade as U.S. car exports decline and firms corresponding to Basic Motors reduce worldwide operations.

“We noticed this occur within the photo voltaic trade … there was a flooding of the market,” Granholm mentioned.

China exported practically 5 million autos in 2023, China Affiliation of Car Producers information confirmed, overtaking Japan to change into the world’s No.1 nation for automobile exports in 2023.

Chinese language EV makers have additionally been releasing new fashions in report occasions, and the outlook for Chinese language automakers stays steady regardless of intensifying competitors, mentioned Fitch Scores in December.

“China is investing large quantities for the aim of bigfooting so we have to perceive that it will be significant for folks to purchase EVs in an inexpensive vogue however we will try this and we will preserve our nation secure,” mentioned Granholm.

The White Home mentioned final month the U.S. was probing whether or not Chinese language car imports pose nationwide safety dangers, as they might gather delicate information about U.S. residents and infrastructure and ship it to China.

“China’s insurance policies may flood our market with its autos, posing dangers to our nationwide safety,” U.S. President Joe Biden mentioned in an announcement. “I am not going to let that occur on my watch.”

The U.S. is trying to spice up home EV provide chains by the Inflation Discount Act, which offers tax credit for autos that bear closing meeting in North America, meet crucial mineral and battery part necessities, amongst different situations.

EVs whose battery parts are constructed or assembled by a “overseas entity of concern” specifically China, Iran, North Korea and Russia do not qualify for the tax incentives.

“We additionally know if it is inbuilt America and with the incentives by the Inflation Discount Act, we will get these worth factors down and now we have seen doubling of EV uptake final yr and extra of that’s projected,” Granholm mentioned.

The U.S. has been ramping up stress on Chinese language corporations in recent times.

In October 2022, it launched guidelines geared toward proscribing China’s capacity to entry, get hold of or manufacture superior semiconductor chips amid considerations that China may use them for navy functions.

Final yr, the U.S. introduced new laws stopping U.S. chip designer Nvidia from promoting superior AI chips to China.

The U.S. Senate voted on Wednesday to approve a invoice that might limit enterprise with Chinese language biotech companies corresponding to WuXi AppTec and BGI on nationwide safety considerations.