Janet Yellen arrived in Guangzhou and was greeted by China's Vice Finance Minister Liao Min and US Ambassador to China Nicholas Burns. Associated Press
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Yesterday, US Treasury Secretary Janet Yellen arrived in Guangzhou to deliver a stern message to Chinese officials: They are producing too much of everything, especially clean energy products, and the world can't absorb it.
China has been flooding global markets with electric cars, batteries, solar panels, semiconductors and other industrial products as a result of years of massive government subsidies and weak domestic demand. World prices for many goods have collapsed, putting pressure on producers in other countries.
“We see a growing threat of loss-making companies being forced to sell production elsewhere,” a senior Treasury Department official said.
In a series of meetings with Chinese economic officials from today through Monday, Yellen reiterated her view that overcapacity is unhealthy for China and that concerns about overcapacity are growing in the United States, Europe, Japan and Mexico. will try to convey. and other major economies.
The official added that Yellen will explain that “if there are trade actions around the world, they are not anti-China, they are a response to Chinese policy.”
But instead, the Chinese government appears to be doubling down on investment in manufacturing capacity in the hot tech sector.
On her way to Guangzhou, Yellen will raise the threat of new tariffs during talks in Guangzhou and Beijing with Chinese Vice Premier He Lifeng and Guangdong Governor Wang Weizhong, who presided over hundreds of billions of dollars' worth of fiscal policy. He declined to say clearly. Recent new projects.
But he said the Biden administration is determined to use the investment tax credit to develop the U.S. supply chain for EVs, solar power and other clean energy products, and is “eliminating other possible ways to protect the supply chain.” I have no intention of doing so.”
Reuters
