StyledComponent cannot be used as a JSX component - Typescript error

Current behavior:

Every @emotion/styled component fails type-checking as a JSX element with TS2604/TS2786 ("does not have any construct or call signatures") when a project declares a global const React: typeof import('react').

To reproduce:

I'm not an expert when it comes to bundling and stuff but by using LLM I was able to come up with this repo: https://github.com/pciarach/react-import-repro. README contains a potential fix (which helped locally) but I have no idea whether it is the correct way to solve it.

Expected behavior:

These components are correct JSX elements so they should not be reported by Typescript as invalid.

Environment information:

• @emotion/[email protected], @emotion/[email protected]
• @types/[email protected], [email protected]
• [email protected]
• tsconfig.compilerOptions: jsx: "react", strict: true, moduleResolution: "bundler", skipLibCheck: true