Detroit City Wire

Steve Cortes, founder of the League of American Workers, has raised concerns about U.S. tax credits in green energy benefiting Chinese companies and potentially threatening national security. He expressed these views on X.

"Why are US taxpayers subsidizing Chinese companies, in key industries like making batteries," said Cortes, Founder of League of American Workers.

In May 2024, the U.S. House of Representatives passed legislation to amend the Inflation Reduction Act (IRA) by closing loopholes that allow companies with ties to the Chinese Communist Party to benefit from green energy tax credits. According to Fox Business, the "No Chinese Handouts in the IRA Act" aims to prohibit tax subsidies for firms linked to foreign adversaries, thereby curbing China's influence in the U.S. clean energy supply chain. Supporters argue that this bill is crucial for protecting American manufacturing and national security interests amid increasing scrutiny of Chinese investments in critical sectors.

A March 2024 report from the House Ways and Means Committee revealed that multiple companies with links to the Chinese Communist Party have been positioned to receive U.S. tax credits under the Inflation Reduction Act. The report identified firms like Gotion, a battery manufacturer with Chinese ownership, as potential recipients of IRA subsidies through projects in Michigan and Illinois. Lawmakers cited this as evidence of foreign adversaries exploiting loopholes in a program intended to boost domestic green energy production.

According to a 2023 analysis by the Congressional Research Service, foreign-owned firms, particularly those based in China and Europe, have secured significant portions of U.S. clean energy incentives since the Inflation Reduction Act took effect. In contrast, domestic beneficiaries, including small and midsize American manufacturers, received comparatively fewer direct credits due to eligibility constraints and capital limitations. The study highlighted this disparity as a challenge to achieving balanced domestic industrial growth through federal green energy investments.

Cortes is a conservative political strategist and media figure known for his roles in Donald Trump’s 2016 and 2020 campaigns and as a senior advisor to a pro-DeSantis Political Action Committee (PAC) in 2024. As described by Key Speakers Bureau, he previously worked in financial markets and held broadcasting roles at CNBC, CNN, and Fox News before founding the League of American Workers where he champions economic populism, secure borders, and policies prioritizing American labor.