US Treasury Secretary Janet Yellen on March 21, 2024 in Washington, DC
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US Treasury Secretary Janet Yellen said on Monday she would not rule out measures, including possible tariffs, on China’s green energy exports.
“I wouldn’t rule anything out at this point. We have to leave everything on the table. We want to work with the Chinese to see if we can find a solution,” she said in an interview with CNBC’s Sara Eisen, asking about the possibility of Washington imposing tariffs if China doesn’t match its approach to industry incentives adapts.
“I’m not thinking so much about export restrictions, but rather some changes in their macroeconomic policies and a reduction in the level of subsidies, particularly to local governments, to companies,” Yellen said.
However, she stressed the need to create a level playing field in the green technology sector.
“We just want to make sure that we are not put out of business and that our companies and workers in these industries have opportunities that will be important to our future,” she added.
Yellen is currently in Beijing and is scheduled to leave China on Tuesday. She arrived in Guangzhou on Thursday last week to meet with Chinese officials as economic relations between the two countries remain strained.
The US is increasingly raising concerns about an oversupply of subsidized Chinese clean energy products in international markets, which it says is hurting the competitiveness of domestic companies. That concern is shared by U.S. allies like Japan and Europe as a flood of cheap Chinese products like solar panels have flooded their markets.
“It is OK for Chinese companies to export to and develop this industry. But some of the techniques they’re using – subsidizing their companies very heavily and then supporting them even when they’re losing money… that’s something that’s unacceptable to us.” “I represent the position of the United States, and of many of our allies think the same way,” Yellen said.
The finance minister said other countries could also explore the possibility of imposing trade restrictions on China. The European Union is currently conducting an investigation into the possible “dumping” of subsidized Chinese electric vehicles into the region, which risks weakening the country’s sizeable automotive industry.
The bloc has so far resisted implementing such measures due to its strong trade ties with the world’s second-largest economy. According to Reuters, German Chancellor Olaf Scholz said on Monday before a three-day trip to China that he was skeptical about the need for tariffs on Chinese electric vehicles.
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2024-04-08 11:17:19
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