The U.S. Treasury Secretary hyped up the so-called "overcapacity theory" in China again, but was questioned

CCTV News

2024-05-12 08:00Posted on the official CCTV news account of Beijing China Central Radio and Television

Recently, in an interview with the American public media Economic Radio, U.S. Treasury Secretary Janet Yellen once again hyped up China's so-called "overcapacity" in electric vehicles, solar energy and other fields, and was questioned by the host.

U.S. RADIO HOST KAY RYSDAL: I want to ask you about one of the highlights of this visit, the overcapacity of electric cars, batteries, these advanced products that you mentioned. Is it possible that we were only defeated by China in these areas?

U.S. Treasury Secretary Janet Yellen: We don't think the competition is fair. We believe that China is providing massive subsidies to areas that they believe are critical to economic development.

American Radio Host Kay Resdal: Are they more subsidized than our CHIPS Act and the Inflation Reduction Act? But we (the U.S.) put in billions of dollars, you [the U.S. government] put in billions of dollars.

In August 2022, the Inflation Reduction Act was signed into law by U.S. President Joe Biden, allowing for about $369 billion in subsidies to promote the production and application of electric vehicles and other green technologies in the United States through high subsidies. The CHIPS and Science Act, which was enacted at about the same time, also allocated about $50 billion to stimulate domestic semiconductor production in the United States, trying to promote the "reshoring" of chip manufacturing to China through huge industrial subsidies and hegemonic clauses that curb competition.

Germany's Iver Institute for Economic Research reported that the US approach poses a threat of "deindustrialization" to Germany, and the German industrial structure will be damaged. Kim Joo-hwan, a professor of international industrial informatics at Kyunggi University in South Korea, said that both the "Inflation Reduction Act" and the "CHIPS and Science Act" reveal the true nature of the US hegemonic thinking.

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