The US warns China of 'dumping' cheap electric cars and batteries to the world

US Treasury Secretary Janet Yellen said that China can sell surplus products at cheap prices, making it difficult for the US and other countries to compete.

In a speech at Suniva solar panel company (Georgia, USA) on March 27, US Treasury Secretary Janet Yellen said China is viewing the global economy as a dumping ground for cheap clean energy products.

"I'm worried that the world will be like China - flooded with products because of excess capacity. This is distorting prices, production models and affecting businesses and workers in the US," she said. Yellen said.

The US Treasury Secretary explained that China currently has a surplus of electric vehicles, solar batteries and lithium-ion. These products can be sold to other countries at cheaper prices. This makes it difficult for green manufacturing industries in the US and other countries to compete.

Ms. Janet Yellen during her testimony before the US Congress on March 21. Photo: Reuters

She said that during her upcoming visit to China, she will discuss with the country's leaders about the above trade activities. "I will consider this a main discussion issue in the upcoming trip. I want my colleagues to take the necessary steps to resolve this situation," Yellen said.

These concerns come as the White House pushes to grow the domestic green energy industry, thanks to investments from the 2022 Inflationary Reduction Act and other new laws. Ms. Yellen also regularly praises the results of these investments.

However, this move is still behind China. Over the years, the country has poured billions of dollars into clean energy, surpassing most countries in the world in energy transition.

Ms. Yellen's comments also came in the context of trade tensions between the US and China, despite efforts to calm them down. In November 2023, US President Joe Biden met Chinese President Xi Jinping to break the ice in this relationship.

The two countries' rift was partly due to the trade war that former US President Donald Trump launched in 2019. Trump said he would restore many strong import tariffs on Chinese goods, if re-elected this year.

Last month, Mr. Biden also opened an investigation into Chinese smart cars, citing a threat to national security because they have an Internet connection.

"China wants to dominate the global car market, but uses unfair measures. Their policies could cause Chinese cars to flood the US market, posing national security risks. I will Don't let that happen," he said.