U.S. Treasury Secretary Janey Yellen Considers Tariffs on China's Green Energy Exports

Yellen Considers Measures on Chinese Green Energy Exports

U.S. Treasury Secretary Janet Yellen has expressed her openness to considering various measures, including potential tariffs, on China's green energy exports. Speaking in an interview with CNBC's Sara Eisen, Yellen emphasized the need to keep all options on the table in order to address concerns about China's approach to industry incentives.

Exploring Solutions with China

Yellen stated, "I wouldn't rule out anything at this point. We need to keep everything on the table. We want to work with the Chinese to see if we can find a solution." She clarified that her focus is not solely on export restrictions, but also on potential shifts in China's macroeconomic policy and a reduction in local government subsidies to firms.

Ensuring Fair Competition

Despite discussing possible measures, Yellen underscored the importance of creating a level playing field in the green technology space. She emphasized, "We just want to make sure that we're not driven out of business, and that our firms and workers have opportunities in these industries which will be important ones in our future."

Current Engagement in Beijing

Yellen, currently in Beijing, is set to conclude her visit on Tuesday. Her trip included discussions with Chinese officials in Guangzhou, as part of ongoing efforts to address economic relations between the two countries.

Global Concerns and Investigations

The U.S. has voiced concerns about the oversupply of subsidized Chinese clean energy products in international markets, asserting that it adversely affects the competitiveness of domestic firms. This sentiment is echoed by U.S. allies like Japan and Europe, who have experienced an influx of inexpensive Chinese products, particularly solar panels, in their markets.

Yellen highlighted the issue, stating, "It's fine for China's firms to export in this industry, to develop it. But some of the techniques that they use — subsidizing their firms very heavily and then supporting them even when they're losing money ... this is something that's unacceptable from the U.S. point of view, and many of our allies feel the same way."

Potential Trade Restrictions

Yellen also acknowledged the possibility of other countries imposing trade restrictions on China. The European Union, for example, is conducting an investigation into the potential "dumping" of subsidized Chinese electric vehicles into the region, which could undermine its significant automotive industry.

Although the EU has strong trade ties with China, concerns about subsidized Chinese EVs persist. German Chancellor Olaf Scholz expressed skepticism about the need for tariffs on Chinese EVs, reflecting the EU's cautious approach to such measures.