Recently, the US media once again said that US Treasury Secretary Janet Yellen is preparing to visit China again. Yellen had already been here once in July last year, so what was she doing this time? Although the official has not confirmed Yellen's itinerary, Yellen has mentioned the focus of her visit to China on many occasions.
In a recent interview with American television, Yellen said she intends to express her dissatisfaction with China's subsidies for clean energy industries such as solar panels and electric vehicles during her upcoming visit to China. It is necessary to warn China in person and pressure China to change. She began the interview by boasting that the Inflation Reduction Act (IRA) would be a huge impact on the U.S. renewable energy industry, and that a solar product manufacturer she interviewed went bankrupt because Chinese solar panels flooded the U.S. market and brought prices down to almost no U.S. companies to compete with it, and thanks to the bill's funding, it would reopen.
And Yellen, who blamed the U.S. solar company's failures on the Chinese government's huge subsidies, complained that no other country in the world subsidizes its priority industries as heavily as China, and that the U.S. concerns are legitimate. She falsely claimed that "China's overcapacity distorts global prices and production patterns, hurting American companies and workers, as well as companies and workers around the world," and intends to talk to China about this during her visit.
I don't know what kind of logic this is, China's overcapacity hurts Americans, and the price of Chinese products is low? The United States can raise taxes by 100 percent, or it can choose not to buy, in fact, the United States does this, but it is not impossible to "decouple", it can only be impotent and angry here. The prices of goods in the United States and the West are too high, which pushes up inflation, and it is normal to ask for some low-priced goods to alleviate it, but as a result, your Western governments now think that Chinese goods are cheap, and they do not understand any logic very well.
China's rapid growth in production capacity can meet the needs of more countries in Asia, Africa and Latin America, and the United States has this view, not because China distorts the world economy, but because the American spirit is distorted. The most essential reason is that the West does not fully compete at all and enjoys the super-profits brought by monopoly. At present, cheap commodities from China have replaced the exploitation and monopoly of the West, so can they not break the defense? In fact, many people in China will question why China always exports commodities at such a cheap price, and cannot sell them at a high price to raise wages or increase welfare for workers? This is understandable, but it is still too one-sided. Enterprises all want to make money, and who doesn't want to sell more expensive, the key is that in the past, many new technologies, new energy, and new products were suppressed by American capital at such a joint price. Once they succeed in research and development, they dump and occupy the market, and their businessmen and those compradors have monopolized food for too long, and they don't know how to cooperate and only want to monopolize it. In many cases, it is not easy for many companies to make it, and they are forced out of it. However, at this stage, it is still necessary to maintain a cost-effective advantage, and when the technology is up, the price can be raised to them, for example, there are already some electric vehicle brands that are exported at a higher price than in China. But we will not be like the West to monopolize and sell high prices, because such an industrial model will not last long.
In the past, the West scolded us for subsidizing, but now they are all carrying out industrial subsidies, but they still have no advantage, which shows that the fundamental reason is not China's subsidy policy, but themselves, competition is just competition, who can blame them? The more incompetent and angry they are, the more it shows that we are doing the right thing.