Yellen warns China’s surplus of solar panels, EVs could be dumped on global markets

Treasury
Secretary

Janet
Yellen
on
Wednesday
warned
that

China
is
treating
the
global
economy
as
a
dumping
ground
for
its
cheaper
clean
energy
products,
depressing
market
prices
and
squeezing
green
manufacturing
in
the
U.S.

“I
am
concerned
about
global
spillovers
from
the
excess
capacity
that
we
are
seeing
in
China,”

Yellen
said
during
a
speech
at
a
Georgia
solar
company
called
Suniva. “China’s
overcapacity
distorts
global
prices
and
production
patterns
and
hurts
American
firms
and
workers,
as
well
as
firms
and
workers
around
the
world.”

China
has
a
surplus
of
solar
power,
electric
vehicles
and
lithium-ion
batteries
that
it
can
ship
out
to
other
countries
at
cheaper
prices.
That
makes
it
difficult
for
the
more
adolescent
green
manufacturing
industries
of
the
U.S.
and
elsewhere
to
compete.

Yellen
said
she
intends
to
put
pressure
on
Chinese
officials
about
these
trade
practices
during
her
upcoming
visit
to
China.

“I
plan
to
make
it
a
key
issue
in
discussions
during
my
next
trip
there,”
she
said. “I
will
press
my
Chinese
counterparts
to
take
necessary
steps
to
address
this
issue.”

The
secretary’s
concerns
come
as
the
White
House
tries
to
build
a
burgeoning
clean
energy
industry
domestically
with
investments
from
the
2022
Inflation
Reduction
Act,
along
with
other
legislation
like
the
CHIPS
and
Science
Act.

Yellen
has
regularly
touted
the
gains
from
these
investments,
including
at
another
recent
speech
where
she
doubled
down
on
the

electric
vehicle “boom”
spurred
by
the
IRA.

But
those
investments
are
playing
catch-up
with
China’s
government.

“The
Biden
Administration
also
recognizes
that
these
investments
are
new,”
Yellen
said
Wednesday.

Meanwhile,
China
has
been
pouring
billions
into
clean
energy
for
years,
outpacing
the
rest
of
the
world
in
the
energy
transition.

Yellen
added
that
the
more
China’s
clean
energy
glut
interferes
with
global
market
prices,
the
worse
off
supply
chains
for
these
energy
sectors
will
be.

“President
Biden
is
committed
to
doing
what
we
can
to
protect
our
industries
from
unfair
competition,”
Yellen
said.

 The
Chinese
Embassy
in
Washington
did
not
immediately
respond
to
a
request
for
comment.

Yellen’s
comments
highlight
ongoing
U.S.-China
trade
tension
even
as
the
two
countries
try
to
steady
relations.

President

Joe
Biden
met
with
Chinese
President

Xi
Jinping
in
November
as
an
olive-branch
effort
to
break
the
ice
after
years
of
tension,
marked
in
part
by
a
tariff
war
launched
by
former
President

Donald
Trump.

Trump
has
floated
reinstating
significant
tariff
levels
on
Chinese
products
if
he
wins
a
second
presidential
term.

In
the
time
since
the
Biden-Xi
meeting,
strengthening
U.S.-China
relations
has
proven
a
precarious
effort
due
to
ongoing

cybersecurity
and
trade
concerns.

In
February,
Biden
launched
an
investigation
into
Chinese
smart
cars,
which
he
said
pose
a
national
security
risk
because
they
connect
to
U.S.
infrastructure
when
they
drive
on
American
roads.

“China
is
determined
to
dominate
the
future
of
the
auto
market,
including
by
using
unfair
practices,”
Biden
said
in
a
February

statement. “China’s
policies
could
flood
our
market
with
its
vehicles,
posing
risks
to
our
national
security.
I’m
not
going
to
let
that
happen
on
my
watch.”