Treasury Secretary Janet Yellen announced that the Biden administration will urge China to alter its industrial policy, which poses a threat to American jobs.

Yellen expressed concerns over Chinese government subsidies driving the rapid expansion of production in sectors such as electric vehicles, batteries, and solar energy equipment, potentially flooding the global market with artificially cheap Chinese products.

The Breakdown

The Biden administration's push for China to change its industrial policy highlights the ongoing tensions between the two nations and the impact of Chinese manufacturing overcapacity on global trade and job security.

In Focus

The Biden administration aims to address China's industrial policy, which is seen as a threat to American jobs.

The focus is on sectors such as electric vehicles, batteries, and solar energy equipment, where Chinese government subsidies have led to rapid production expansion.

The U.S. and Europe are concerned about the potential flood of low-priced Chinese exports that could harm their domestic industries.

China's response to these calls for policy change remains uncertain, as the nation aims to build itself into a major power and resist external pressure.

Overcapacity also affects China, and experts call for better coordination of policies to promote new technologies.

Talks between the U.S. and China on these issues will continue during the upcoming economic and financial working group meetings.

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