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Yellen Flags Concerns Over China’s Overproduction Amid Tariff Speculation

Daniel Kim Views  

Remarks on China’s overproduction and mentioning of measures
Yellen keeps silent on potential additional tariffs

U.S. Treasury Secretary Janet Yellen prepares for a meeting with Chinese Deputy Prime Minister Hu Hifeng on November 10 last year. San Francisco, USA/Reuters-Yonhap News

U.S. Treasury Secretary Janet Yellen disclosed that additional protective measures against China were being considered before she visited the country.

According to Axios, a U.S. online media outlet, Yellen made these remarks in Anchorage before departing for China on the 3rd (local time) during a meeting with journalists.

She stated, “We are striving to foster industries such as solar cells, electric batteries, and electric vehicles. We do not wish to exclude other methods of safeguarding these industries.”

Furthermore, she pointed out that “The Chinese government is making extensive investments in certain industries experiencing a surge in production despite insufficient demand,” adding, “Not only the United States, but also many countries including Mexico, Europe, and Japan, perceive pressure due to China’s substantial investments.” She emphasized the need to “consider various measures to protect American industries.”

However, she remained cautious about the possibility of imposing additional tariffs.

Yellen’s visit to China marks her second since taking office. Last July, amidst escalating tensions between the U.S. and China, she visited China and met with key officials and President Xi Jinping.

This visit comes shortly after a phone call between U.S. President Joe Biden and President Xi. The leaders exchanged views on issues such as Taiwan and technology security. Yellen is scheduled to meet with Deputy Prime Minister Hu Hifeng, Governor of the People’s Bank of China Pan Gongsheng, and Governor of Guangdong Province Wang Weizhong.

The Wall Street Journal (WSJ) reported, “While Yellen did not comment on the possibility of tariff increases, she stated that she would take all necessary measures,” adding, “Yellen’s warning to China signals a potential move by the Biden administration towards adopting Trump-era tariff increases on certain Chinese products, including electric vehicles.”

Daniel Kim
content@viewusglobal.com

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