China will not yet build a battery plant in the U.S.

China will not yet build a battery plant in the U.S. 1

The largest Chinese battery manufacturer CATL has frozen a project to build a battery factory in the United States. This is reported by Bloomberg with reference to its own sources. The reason for this was the recent visit of the Speaker of the US House of Representatives Nancy Pelosi to Taiwan, which China considers its territory.

For CATL, the American plant project was to become one of the largest. In the coming weeks, the company intended to announce the construction site of a new site, and Tesla and Ford were to become the main consumers.

However, it is not necessary to talk about the closure of the project. So far, cooperation has only been suspended, and the signing of all necessary documents with the American side will now take place if only this fall.

However, the probability of a positive resolution of the conflict, admittedly, is still low. The fact is that the visit of American diplomats and officials to Taiwan is positioned by mainland China as a violation of the sovereignty of the People’s Republic of China. The island is not a member of NATO, so a military solution to the conflict is quite likely.

But how will this affect international cooperation? It is likely that most Chinese companies will now suspend any kind of partnership with the Americans until all controversial issues in the political arena are resolved. However, this may also impact the economy of China itself, because a lot of investments from the United States are still pouring into it.

Source: Bloomberg