Biden/VdL Meet @ 1400ET/2000CET, Focus On China & Green Tech Subsidies

US President Joe Biden will host European Commission President Ursula von der Leyen at the White House later today, with a potential deal related to the massive US Inflation Reduction Act (IRA) green tech subsidy scheme as well as relations with China set to dominate talks. The two are due to meet at 1400ET/2000CET, with a press point shortly afterwards.

• On the IRA, the EU has announced its own Green Deal Industrial Plan that intends to loosen state aid rules around green tech and renewable energy. However, the US and EU are seen as close to a deal on the EU being given a similar exemption as Canada and Mexico - the US' USMCA partners - regarding access to 'Made in America' incentives. The announcement of a final deal is not expected today.
• On China, the EU has sought to show to the US that it is taking measures to reduce reliance/influence of Beijing, including the plan to place export controls on chip manufacturing equipment in line with US measures.
• Biden and VdL are also likely to talk 'critical minerals', referring to rare earths crucial in the production of green tech such as EV batteries. Historically, China has been a major source of these materials, but both US and EU looking to alter their supply chains. For the EU, which does not have significant deposits of these materials, developing supply chains with the US crucial for future green tech ambitions.