In the global economic map, the competition in the field of new energy is increasingly becoming the core field of strategic competition between countries. Recently, U.S. Treasury Secretary Janet Yellen's remarks about China's "overcapacity" in advanced manufacturing fields such as electric vehicles and solar energy have not only aroused the attention of the international community, but also encountered doubts in the United States. The direct questioning of Kai Rysdal, the host of the American public media Economic Radio, reveals the more complex global economic landscape and policy orientation issues behind this debate.
Yellen's remarks are not an isolated incident, but a continuation of a series of US government economic policy attitudes toward China in recent years. In the face of China's rapid rise in the field of new energy, especially its leading position in industries such as electric vehicles and solar photovoltaics, the U.S. government has taken a series of measures aimed at promoting the development of related industries in the country and reducing dependence on China's supply chains. The introduction of the Inflation Reduction Act and the CHIPS and Science Act is a manifestation of the United States' attempt to accelerate local industrial transformation and technological innovation through large-scale subsidies and policy preferences.
Yellen's "overcapacity" is essentially the result of China's long-term investment, innovation, and technology accumulation in the new energy sector. China's large-scale production has reduced costs and increased global market share, which is a direct reflection of competitiveness in a market economy. However, the US official label of it as "unfair competition" is actually a cover for the inadequacy of its own industrial policy. As Rysdal has questioned, the US government is also supporting its own industries through huge subsidies, and this "subsidy race" is not unique to China.
The massive subsidy policy of the United States, ostensibly to combat climate change and enhance the competitiveness of domestic industries, has actually triggered trade tensions and industrial conflicts on a global scale. A report by Germany's Iver Institute for Economic Research warns that the US approach could trigger a trend of "deindustrialization" and damage the industrial structure of other countries, especially allies. South Korean scholar Kim Joo-hwan further pointed out that these two bills of the United States expose its intention to maintain its hegemonic status, and try to force the reorganization of the global industrial chain to serve the national interests of the United States through subsidies and restrictions on competition.
The debate over "overcapacity" and industrial subsidies actually reflects the fierce competition for the dominance of emerging industries in the context of globalization. In the new energy sector, which is a key area for future development, the competition between China and the United States is particularly significant. However, the real challenge is how to balance competition and cooperation between countries to ensure the healthy development of the global industry. On the one hand, all countries have the right to support their own industrial development through legitimate policy tools; On the other hand, excessive protectionism and unilateral actions may undermine the global market order and hinder technological progress and optimal allocation of resources.
In the face of global competition in the field of new energy, the battle between China and the United States over "overcapacity" and subsidies is actually a contest of deeper economic models and strategic choices. In today's globalized world, it is impossible for any country to independently complete the task of energy transition and industrial upgrading. Therefore, building a rules-based multilateral trading system and promoting international cooperation instead of confrontation is the right way to achieve sustainable global economic development. Instead of accusing other countries of "unfair competition", the United States should focus on enhancing its own innovation capacity and policymaking that serves the common interests of all mankind, and jointly promote the global new energy revolution to a new stage of more openness, inclusiveness and cooperation.