Janet Yellen has voiced strong concerns over Chinese subsidies benefiting clean energy industries, citing their detrimental impact on American firms and global markets.
U.S. Treasury Secretary Janet Yellen has voiced strong concerns over Chinese subsidies benefiting clean energy industries, citing their detrimental impact on American firms and global markets. In a speech delivered in Norcross, Georgia, Yellen emphasized the unfair competition posed by China’s national support for energy companies, creating oversupply, market distortion, and adverse effects on workers worldwide.
Yellen plans to address these issues of energy subsidies directly during her upcoming visit to China, where she intends to discuss the ramifications of overcapacity in various sectors. She highlighted the risk of flooding international markets with cheap goods such as solar panels, electric vehicle components, and lithium-ion batteries, leading to disruptions in production and global pricing dynamics.
Expressing her belief that excessive capacity poses threats not only to the American economy but also to global productivity and growth, Yellen emphasized the importance of Chinese counterparts taking corrective actions. Her scheduled meetings in China, reportedly set for April according to Politico, aim to engage in constructive dialogue on these critical issues.
The secretary’s visit to Georgia included a tour of a recently reopened solar cell manufacturing plant, previously shuttered in 2017 due to stiff competition from Chinese factories. Its revival comes amid increased demand driven by tax credits included in the 2022 Inflation Reduction Act, signaling a positive turn for domestic solar panel production.
Meanwhile, tensions between the U.S. and China escalated as China filed a complaint against the U.S. at the World Trade Organization, alleging discriminatory practices related to electric vehicle subsidies. Chinese officials refrained from elaborating on the specific catalyst for the complaint.
Yellen expressed optimism for a productive exchange with Chinese officials, aiming to address subsidy-related concerns and oversupply challenges. She emphasized that her stance is informed by feedback from global counterparts in both developed and emerging economies, as well as the concerns voiced by the international business community.
The upcoming discussions between Yellen and Chinese counterparts are poised to be crucial in fostering a more equitable global trade environment, particularly in the rapidly evolving clean energy sector. As nations navigate the transition towards sustainable energy solutions, addressing issues of market fairness and competition will remain paramount for fostering mutual economic growth and stability.