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The US House has passed a bill aimed at China that would limit tax credits for electric vehicles, by Reuters

© Reuters. FILE PHOTO: A man wipes the floor next to the Toyota Prius PHEV and Toyota BZ4X during the Indonesia International Auto Show in Tangerang, Indonesia July 18, 2024. REUTERS/Ajeng Dinar Ulfiana/File Photo

WASHINGTON (Reuters) – The U.S. House of Representatives on Thursday narrowly voted to approve legislation tightening rules limiting Chinese content in vehicles that qualify for U.S. tax credits for electric vehicles.

The House voted 217-192 to approve the bill, which was not taken up by the Senate, to tighten the definition of Chinese components that make vehicles ineligible for US electric vehicle tax credits. The Alliance for Automotive Innovation, which represents General Motors (NYSE:), Toyota Motor (NYSE: ), Volkswagen (ETR: ) and other car companies said the bill would result in fewer eligible vehicles and would mean aggressive vehicle emissions rules and EV targets would have to be scrapped.

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