China’s green energy ramp-up is “distorting” global prices: Janet Yellen
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The news: US Treasury Secretary Janet Yellen has said that the green energy industry’s ramp up in China is distorting the global economy.
The numbers: China is currently the dominant global player for electric vehicle batteries, and accounted for around 60% of global electric car sales in 2023.
The context: In remarks to be delivered on Wednesday in Norcross, Georgia, for the reopening of a US solar-cell manufacturing facility, Yellen will state that China’s increased production across solar energy, electric vehicles and lithium-ion batteries amounts to unfair competition which “distorts global prices” and “hurts American firms and workers, as well as firms and workers around the world.”
Yellen stated that she plans to convey these views to Beijing on her upcoming visit, stating: “We have raised overcapacity in previous discussions with China and I plan to make it a key issue in discussions during my next trip there.”
On Tuesday China filed a complaint with the World Trade Organisation over the US’ requirements for electric vehicle subsidies. China says the rules, which hold that US citizens cannot claim a USD7,500 clean-vehicle tax credit if they buy cars containing battery components from a “foreign entity of concern” starting this year, are discriminatory and distort fair competition.
The source: Associated Press
