U.S. Treasury Secretary Janet Yellen expressed that the United States is considering various measures, including potential tariffs, on China’s green energy exports. Yellen emphasized the importance of creating a level playing field in the green technology space, particularly in areas such as solar power, electric vehicles, and lithium-ion batteries. The U.S. is concerned about an oversupply of subsidized Chinese clean energy products flooding international markets at discounted prices, which is seen as harming the competitiveness of domestic firms and potentially undermining the U.S. economy.
Yellen’s comments come as she is currently in China, connecting with Chinese officials amid ongoing economic tensions between the two countries. The U.S. has been vocal about its concerns regarding Chinese industry incentives and subsidies, which it sees as unfair trade practices. Other U.S. allies, such as Japan and Europe, share similar anxieties about the impact of cheap Chinese products on their markets. The European Union is conducting an investigation into the potential “dumping” of subsidized Chinese electric vehicles, with Germany expressing skepticism about the need for tariffs on Chinese EVs.
China’s Minister of Commerce, Wang Wentao, has rejected accusations of oversupply by the U.S. and Europe, attributing the country’s EV industry growth to “constant innovations.” Chinese-built EVs currently face sizable tariffs in the U.S., with the Biden administration considering a review of these tariffs amidst pressure from lawmakers. There are also concerns about the national security risks associated with imports of Chinese EVs, particularly in relation to data collection and connected car technologies.
In addition to trade tensions, the U.S. has raised concerns about Chinese technology firms posing risks to national security. Lawmakers recently passed a bill calling for Chinese tech giant ByteDance to divest its popular TikTok app in the U.S. or face a ban. Yellen did not provide specific details on whether China would allow the sale of TikTok’s assets to U.S. entities. The Biden administration has also indicated its willingness to impose sanctions on Chinese entities that are perceived to be supporting Russia’s military and its actions in Ukraine.
Yellen clarified that while China and Russia engage in trade, any military support from China to Russia in its conflict with Ukraine is unacceptable to the U.S. The Treasury Secretary highlighted the ability of the U.S. to impose sanctions on entities involved in supporting Russia’s military actions. The stance on China’s relationship with Russia underscores the Biden administration’s efforts to pursue policies that align with U.S. geopolitical and strategic interests, even at the risk of escalating tensions with key global players.
