U.S. Seeks to Join Forces With Europe to Combat Excess Chinese Goods
The New York Times
Treasury Secretary Janet L. Yellen warned that China’s industrial strategy posed a global threat that requires a united response.
Treasury Secretary Janet L. Yellen said on Tuesday that the United States and Europe needed to work together to push back against China’s excess industrial capacity, warning that a wave of cheap Chinese exports represents a grave threat to the global economy.
Ms. Yellen’s remarks, delivered during a speech in Germany, highlighted what is expected to be a central topic of discussion when the Group of 7 finance ministers meet in Italy this week.
“China’s industrial policy may seem remote as we sit here in this room, but if we do not respond strategically and in a united way, the viability of businesses in both our countries and around the world could be at risk,” Ms. Yellen said at the Frankfurt School of Finance and Management, where she received an honorary doctoral degree.
China’s excessive production of green energy technology has become a pressing trans-Atlantic concern in recent months. Officials in President Biden’s administration have grown increasingly worried that his efforts to finance domestic manufacturing of clean energy and other next-generation technologies will be undercut by China, which is churning out steel, electric cars and solar panels at a rapid clip.
The Biden administration is now looking to Europe to help the developed world prevent the kind of China shock of the early 2000s, which helped decimate manufacturing in exchange for cheap goods. Last week, Mr. Biden increased tariffs on some Chinese imports, including levying a 100 percent tax on electric vehicles. He also formally left in place levies on more than $300 billion worth of Chinese goods that President Donald J. Trump had imposed.
The United States hopes that a united front will convince China that its largest trading partners are prepared to erect trade barriers that will prevent Chinese electric vehicles, batteries and panels from dominating Western markets.
