In the opinion of the United States Treasury Secretary, the measures adopted by Beijing could alter world prices, flooding the market with "artificially cheap" Chinese products.
US Treasury Secretary Janet Yellen has expressed concern about the growing adverse impact on businesses and employment around the world of Beijing's boost to Chinese production in new 'green' industries, given what has assured that Washington does not rule out any response.
At a press conference in Beijing, Yellen reported that she has conveyed her concerns to senior Chinese officials about the "growing negative effects" in the United States and the world of China's stance and its macroeconomic imbalances, with weak consumption of households and business overinvestment, compounded by large-scale government support in specific industrial sectors.
"We are seeing increased business investment in a number of new sectors targeted by the People's Republic of China's industrial policy. That includes electric vehicles, lithium-ion batteries and solar energy," Yellen lamented, warning of that this creates significant risks for workers and businesses in the United States and the rest of the world.
In the opinion of the United States Treasury Secretary, the measures adopted by Beijing could alter world prices, flooding the market with "artificially cheap" Chinese products, which calls into question the viability of American and foreign companies, as It happened more than a decade ago with Chinese steel.
"I have made it clear that President Biden and I will not accept that reality again," he assured.
In this sense, in statements to the CNBC network, Yellen has avoided ruling out any possible measure in response to Chinese policies. "We need to keep everything on the table," she said when asked about the possibility of Washington imposing tariffs if China does not adjust its approach to industrial incentives.
"I'm not thinking so much about export restrictions, but rather some changes in their macroeconomic policy and a reduction in the amount of subsidies to businesses, particularly to local governments," Yellen said.
