WionDrive News Desk 
China’s excess industrial capacity has been a topic of concern for the U.S and its allies. Janet Yellen, U.S. Treasury Secretary visited China earlier this month and was successful in addressing U.S. concerns to the Chinese officials regarding Beijing’s overwhelming global supply of electric vehicles, solar panels and various other clean energy products that are actively posing a threat to U.S. jobs.
Yellen added that Chinese officials are aware of the problem with industrial overcapacity but they need to timely address it. However, she acknowledged that the problem will not be resolved “in a day or a week”.
“It’s important that China recognise the concern and begin to act on it,” Yellen said. “But we don’t want our industry wiped out in the meantime, so the Biden administration wouldn’t want to take anything off the table.”
The issue threatens producers of competitive products in the U.S., Europe, Japan and several emerging markets, including Mexico and India. It was a major point of contention with Chinese officials in Washington on the sidelines of the IMF and World Bank spring meeting last week.
Meanwhile, the Biden administration is rounding up a review of the ‘Section 301’ unfair trade tariffs on Chinese imports imposed by former President Donald Trump in 2018 which could end up in higher tariffs being imposed on some products going forward. President Joe Biden called for the review last week to triple the Section 301 duties on Chinese steel to 25%.
“We have no problem with China producing and selling globally and exporting, but the United States and Europe and other countries also want to have some involvement in the ability to produce clean energy products that are going to be of great importance,” Yellen said.
U.S. Trade Representative Katherine Tai also told U.S. senators that the U.S. needed to take “early action, decisive action” to protect the incipient American EV sector from Chinese imports.Currently, U.S. tariffs on Chinese vehicle imports are about 27.5%, and only a few Chinese EVs are sold in the United States.
