The Concerns of Treasury Secretary: U.S. Treasury Secretary Janet Yellen sat down with CNBC’s Sara Eisen on “Worldwide Exchange” to shed light on her recent engagements with Chinese authorities concerning the trading practices of the Middle Kingdom.
The Issue at Hand: Yellen voiced apprehension over the industrial stratagem of China, which encompasses hefty government subsidies and a surplus of manufacturing capabilities. The aftermath of these policies has been an inundation of low-priced clean-energy products penetrating markets worldwide.
“We are just one among the nations that find themselves on the edge due to a deluge of Chinese exports that pose a threat to vital enterprises and sectors within our borders,” Yellen articulated to CNBC.
Significance of the Matter: Yellen pointed out that numerous Chinese enterprises thrive on government aid even while running at a loss. The proliferation of affordable exports has been instrumental in driving foreign entities out of operation. Yellen emphasized the necessity of protective measures to secure opportunities for American businesses and workers in the forthcoming era of clean-energy innovations.
Additional Insights: Yellen is on a quest to foster stronger ties with China but has raised alarms over concerns of surplus production capabilities.
Yellen underscored the imperative for the United States to establish a self-reliant supply chain and bolster manufacturing capacities in the nascent clean energy sector as part of the overarching national security plan.
The Secretary of the Treasury expounded on how the U.S. and its global counterparts are pressing for a recalibration of China’s macroeconomic policies, urging a reduction in subsidies to companies engaged in clean energy sectors such as solar panel manufacturing, electric vehicles, and lithium-ion battery production.
Yellen disclosed that Chinese officials have committed to maintaining a robust dialogue on the matter and hinted at the contemplation of tariffs as a stratagem to level the competitive landscape.
“I’m leaving no stone unturned at this juncture,” Yellen stated.
Image Source: Shutterstock
