Treasury Secretary Janet Yellen indicated that the United States might resort to tariffs and other trade barriers against China to shield industries affected by China’s escalated manufacturing output.
Yellen, speaking during a layover in Alaska before heading to China, highlighted the importance of nurturing domestic industries such as solar cells, electric batteries, and electric vehicles. She emphasized openness to exploring various measures to safeguard these industries.
Yellen’s statements reflect the Biden administration‘s readiness to mitigate the economic impact of what they perceive as China flooding the global market with cheaper goods, thereby dampening demand for products from other competing nations.
Treasury secretary (Credits: Reuters)
According to Yellen, China’s important investments have led to increased production in certain sectors, yet demand hasn’t matched this surge. She expressed concerns about the repercussions of Chinese subsidies in the United States and other countries, including Japan, Mexico, and European nations.
This visit marks Yellen’s second trip to China within a year, following a recent conversation between President Biden and Chinese President Xi Jinping.
Secretary Janet Yellen (Credits: Fox 59)
Yellen previously highlighted China’s heightened production in electric vehicles, lithium-ion batteries, and solar energy, which she believes distorts global prices and adversely affects American businesses and workers.
Ahead of her trip, Yellen stated her intention to urge her Chinese counterparts to address these concerns and take necessary actions to rectify the situation.
