"The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs."

Japanese and European car manufacturers can just source batteries from somewhere else other than China, then problem solved. Car/electronics manufacturers are already moving out of China at a rapid pace this year anyways. According to the office for national statistics in China, for jan/feb of 2023 http://www.ce.cn/xwzx/gnsz/gdxw/202303/27/t20230327_38464161..., electronics manufacturing profits is down 71% and car manufacturing profits is down 41.7%, due to slacking demand. Smart to move sourcing early anyways, it looks like China is starting to be confirmed to help Russia militarily https://www.reuters.com/world/europe/ukraine-says-it-is-find...

Actually, it would appear that Chinese EV manufacturers have not much place to go. EV market in China peaked at 2021. With regards to Europe, BYD only sold tens(!!) of cars in Germany in 2023, compared to thousands of Tesla cars sold.