The American government's new policy dictates that electric vehicles incorporating Chinese materials will lose eligibility for federal tax credits up to $7,500, as announced by the Biden administration. This decision impacts the future incentives and subsidies for US-bound EVs, effectively barring vehicles containing Chinese components from receiving the tax credit. The final rule from the Treasury Department is set to prompt shifts in the EV industry and supply chains, impacting the competitiveness of electric vehicles in the market.