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Recently, in an interview with the American public media Economic Radio, U.S. Treasury Secretary Yellen once again hyped China's so-called "overcapacity" in the fields of electric vehicles and solar energy, and was questioned by the host.
U.S. RADIO HOST KAY RYSDAL: Is it possible that we have been defeated by China in these areas just because of the overcapacity of electric vehicles, batteries, and advanced products that you mentioned during your previous visit to China?
U.S. Treasury Secretary Janet Yellen: We don't think the competition is fair. We believe that China is massively subsidizing areas that they believe are critical to economic development.
American radio host Kay Rysdal: Are they more subsidized than our CHIPS Act and the Inflation Reduction Act provide? The U.S. government has invested 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 Germany's 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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Editor: Wang Yifan