Treasury Secretary Janet Yellen: Won’t rule out possible tariffs on China’s green exports

By Joel Wong

At the conclusion of her China visit, Treasury Secretary Janet Yellen discusses concerns about Chinese overcapacity in green technology industries such as EVs and solar panels during her visit to China, hinting at the possibility of tariffs if issues are not addressed.

Key Takeaways

• Yellen highlights concerns about Chinese government subsidies leading to overcapacity in key industries.
• Emphasis on the importance of fair competition and a level playing field in the green technology sector.
• Discussions centered on the impact of Chinese exports on international markets, including issues like driving out domestic firms.
• Yellen mentions ongoing dialogue and a possible shift in Chinese macroeconomic policies to address concerns.
• The potential for tariffs on Chinese green technology exports is not ruled out if solutions are not found through dialogue.
• Reference to previous tariffs imposed during the Trump administration and the need for a balanced approach in trade relations.
• Yellen stresses the importance of avoiding trade tensions and ensuring opportunities for domestic workers and firms in key industries.

It remains to be seen how China will respond to Janet Yellen’s proposals regarding tariffs on their green energy exports. Yellen mentioned that China understands the concerns raised and has agreed to continue intensive dialogue on the issue. While she mentioned that China has tools they could use to address the situation, the specific actions China will take are not clear yet. Yellen also mentioned the possibility of tariffs if a solution isn’t found. Thus, how China will ultimately accommodate Yellen’s proposal is uncertain and will depend on the negotiations and discussions that follow.