Yellen Warns China’s Excess Clean Energy Production Could Flood Global Markets

Janet Yellen recently spoke at a Georgia solar company where she expressed worries about China’s massive surplus in the production of clean energy technologies. The Treasury Secretary noted that China has invested heavily in sectors like solar power, electric vehicles, and batteries which has resulted in significant overcapacity.

This overproduction allows China to export these clean energy goods to other countries at very low prices. Yellen said this dumping of cheap products has depressed global market prices and made it challenging for domestic manufacturers in the US and elsewhere to compete. The Secretary plans to bring up these issues directly with Chinese officials during an upcoming visit in an effort to address the market distortions.

Catching Up On Clean Energy

While China has a sizable head start in clean energy manufacturing due to its early investments, the US is working to develop its own industries. Yellen pointed to recent legislation like the Inflation Reduction Act as helping to spur domestic growth in areas such as EV production.

However, she acknowledged that these efforts still have ground to make up compared to China’s more established position as the top global producer and exporter of renewable technologies. Going forward, balancing trade while supporting the growth of clean industries will be an ongoing challenge.

Yellen believes that without intervention China’s surplus clean energy capacity could significantly damage supply chains. She is committed to defending American firms from what she sees as unfair competition. The Secretary’s remarks highlight the persisting trade tensions between the two countries despite recent diplomatic meetings aimed at improving relations. Managing competition in strategically important sectors like clean energy will continue to be a point of focus for the Biden administration.