According to Reuters, US Secretary of the Treasury Janet Yellen commented that China's overcapacity has been hurting manufacturers in many countries and threatening the US economy. The US would not rule out any countermeasures, including new tariffs.
She said while Chinese policymakers have acknowledged that there is overcapacity in electric vehicles, solar panels and other clean energy products, Washington believed that Beijing would need to address the problem, which both sides discussed in depth last week during the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington.
Yellen remarked that China's overcapacity threatens the viability of manufacturers in the US, Europe, Japan, Mexico and India, but the problem won't be solved in a day or a week, so it's important that China recognises the problem and starts taking action to solve it.
Responding to questions from certain countries about the concern of overcapacity, He Yadong, spokesperson for the Chinese Ministry of Commerce, criticised the concern as unwarranted and is firmly opposed by China. He claimed that instead of overcapacity for the new energy industry globally, there is actually a shortage of capacity. China's new energy industry has continued to provide affordable and high-quality energy, making important contributions to global green development.
He commented that the countries and regions concerned could not hold up the banner of green development while wielding the stick of protectionism, which is a typical demonstration of self-contradiction and double standards.
