US, Europe must respond to China’s industrial policies

US Treasury Secretary Janet Yellen emphasised the need for a coordinated response from the United States and Europe to address China’s industrial policies, Reuters reported on Tuesday.

Speaking at an event in Frankfurt, Yellen highlighted the threat posed by China’s excess industrial capacity to manufacturers on both sides of the Atlantic and to emerging market countries.

Yellen highlighted the global impact of China’s industrial policy, emphasising the need for a coordinated approach to address potential risks for businesses in the US, Europe, and beyond.

This follows the Biden administration’s imposition of tariffs on various Chinese industries, including electric vehicles, solar products, semiconductors, and steel, according to the report.

In April, Yellen had already warned Chinese officials that the US would not accept their excessive production of goods flooding global markets with cheap exports. The tariffs imposed by the US aim to address this issue and protect domestic industries.

Yellen noted that the European Union and other countries are also investigating trade remedies related to Chinese EVs and other products. Collaboration between the US and Europe is essential to address China’s industrial practices effectively.