It was inevitable, really. From the moment the Inflation Reduction Act was signed, it was only a matter of time before China disputed the rather generous rebates awarded to US-made electric cars and production credits for making EV batteries in the US with materials and components sourced from countries that have friendly trade relations with the US. The wonder is that it has taken this long.
“Under the disguise of responding to climate change, reducing carbon emission and protecting environment, are in fact contingent upon the purchase and use of goods from the United States, or imported from certain particular regions,” the Chinese mission said. It said it was launching the proceedings “to safeguard the legitimate interests of Chinese electric vehicle industry and to maintain a fair level playing field of competition for the global market.
Yellen, who is planning her second trip to China as Treasury Secretary, said in remarks prepared for delivery in Georgia on March 27, 2024, that she will convey her belief to Chinese officials that Beijing’s increased production of green energy also poses risks “to productivity and growth in the Chinese economy.” She is scheduled to speak at Suniva, a solar cell manufacturing facility in Norcross, Georgia.
The tone of Yellen’s speech stands in contrast to Chinese leader Xi Jinping, who met with American business leaders in Beijing Wednesday and called for closer trade ties with the U.S. amid a steady improvement in relations. Chinese and American trade relations have sunk to the lowest level in years, following the botched attempt by the prior US president to show how tough he was by initiating a trade war with China.