U.S. Treasury Secretary Janet Yellen, left, shakes hands with Governor of the People's Bank of China Pan Gongsheng as they meet at the People's Bank of China in Beijing Monday, April 8, 2024. – China's burgeoning production of electric cars and other green technologies has become a flashpoint in a new U.S.
So what's behind this new trade fight between the U.S. and China? Here are some questions and answers on the issue:After more than a decade of subsidizing its automakers, China has built a substantial car industry that accounts for 60% of global electric vehicle sales, according to the Paris-based International Energy Agency.
Steel and aluminum imports surged into the United States roughly a decade ago, after China's government supported increased production after the 2008-2009 global financial crisis. Those imports were hit with tariffs in 2017 during the Trump administration. Biden has kept the tariffs. But the government in Beijing has also acknowledged that manufacturing overcapacity and weak consumer spending are challenges it needs to confront to achieve sustainable growth for its own economy.