Treasury Secretary Janet Yellen suggested that the United States will retain the option of protecting new industrial sectors against China. The decision comes after what she described as China's massive state investments in areas such as clean energy.
When it comes to the possibility of imposing tariffs to pressure China, Janet Yellen said, in statements reported by AFP, that she "won't rule out any means" to protect these industries. During hours of bilateral meetings, working lunches and even a boat ride through Canton, it became clear that Yellen's goal is to bring the White House's message to Chinese President Xi Jinping's inner circle, a treasury official said.
The treasury secretary arrived in China on Thursday, on her second visit to the country in less than a year, to address Beijing's industrial subsidy policy. She intends to express the U.S.' concerns about the competitive effect derived from Chinese subsidies to sectors such as solar energy and electric vehicles, areas in which the United States is trying to encourage production through subsidies.
"During my time in China, I’ll focus on advancing a healthy economic relationship that provides a level playing field for American workers and firms, and furthering cooperation on shared challenges like illicit finance and climate change," Yellen posted on her X account.
During my time in China, I’ll focus on advancing a healthy economic relationship that provides a level playing field for American workers and firms, and furthering cooperation on shared challenges like illicit finance and climate change.
— Secretary Janet Yellen (@SecYellen) April 4, 2024
She claimed that "as the world’s two largest economies, it is critical that we maintain clear channels of communication – particularly when we disagree. The American people expect us to responsibly manage this relationship, and the world expects that we work together where we can."
