Yellen: green energy development in China distorts world prices

US Treasury Secretary Janet Yellen says increased production of solar energy, electric vehicles and lithium batteries by China constitute unfair competition that “distorts world prices” and “harms American businesses and workers, as well as businesses and workers around the world”.

Yellenwho is preparing for her second trip to China as Treasury secretary, notes in remarks prepared for an appearance Wednesday in Georgia that she will express to Beijing her belief that increasing green energy production also poses risks.to the productivity and growth of the Chinese economy”.

“I will pressure my Chinese counterparts to take necessary measures to address this issue.“says the text of Yellen.

China It dominates the electric vehicle battery market and has a rapidly expanding auto industry that could challenge established auto companies when it goes global. The International Atomic Energy Agency, based in Paris, highlights that in 2023 China comprised 60% of global sales of electric vehicles.

Yellen He was scheduled to deliver the remarks Wednesday at Suniva, a solar cell factory in Norcross, Georgia. The plant closed in 2017 largely due to the massive influx of cheaper imports into the market, according to the Treasury. It is now reopening in part thanks to incentives included in the Inflation Reduction Act passed by Democratic lawmakers, which offered tax incentives for green energy manufacturing.

The company’s history serves as a warning about the impact of market oversaturation by Chinese products, and about the state of economic relations between China and the United States, affected by investment barriers and fears of espionage, among other issues.

China filed a complaint on Tuesday with the World Trade Organization against the United States, for what it calls discriminatory requirements for subsidies for electric vehicles. China’s Ministry of Commerce did not specify what prompted the move.