Yellen says G7 to discuss Chinese overproduction
FRANKFURT: United States Treasury Secretary Janet Yellen said on Tuesday that concerns about Chinese overproduction of key green technologies would be a key topic at a forthcoming meeting of G7 finance ministers. Chinese production in areas such as electric vehicles, batteries and solar panels “significantly exceeds global demand”, Yellen said in a speech in Frankfurt.
The excess capacity “poses a threat to the development of clean energy industries around the world”, Yellen said. The subject “will be a focus at the G7 meetings in Italy later this week”, she added.
Finance ministers from the Group of Seven industrialized nations are due to meet in Stresa, Italy, from Thursday. Washington is concerned that Chinese government support is leading to more production capacity than global markets can absorb, driving cheap exports and stifling growth elsewhere.
Yellen said her concerns had been “communicated directly to my Chinese counterparts”, during a visit to the country last month. The treasury secretary and US President Joe Biden would take action to protect workers and companies from “being undercut by unfair Chinese economic competition”, Yellen said. “We want to see healthy green technology sectors, from innovative start-ups to green manufacturing factories in the United States, Europe and around the world, not just in China,” she said.
The United States earlier this month sharply raised tariffs on Chinese-made electric vehicles and other key technologies over capacity concerns. Meanwhile the European Commission, which participates in G7 summits alongside EU member states France, Germany and Italy, has opened a series of probes into Chinese green tech subsidies. Beijing has reacted angrily to the US and European Union actions, warning that the move risk souring economic cooperation with China.
It is “vital and urgent” for the United States and allies to find a way to tap immobilized Russian assets in helping Ukraine, Yellen said in prepared remarks released Monday. The excerpts of her speech, to be delivered Tuesday in Frankfurt, come as finance leaders of the Group of Seven industrialized nations are due to gather later this week.
G7 allies are warming to a US plan that can raise around $50 billion for Ukraine, the Financial Times reported on Monday. The plan involves a G7 loan backed by future profits from around $350 billion of Russian assets that were immobilized after Moscow’s invasion of Ukraine, the report added.
The US plan will serve as a basis for G7 discussions, an Italian Treasury source confirmed to AFP.
For Italy, which holds the G7 presidency this year, the proposal is an “interesting way forward” and one to be explored further. Any decision, however, needs the European Union’s support, a solid legal basis and will only be announced when G7 leaders meet in June, the source said.
“If we stand by as dictators violate territorial integrity and flout the international rules-based order, they have no reason to stop at their initial targets,” Yellen said in the speech excerpts.
“I believe it’s vital and urgent that we collectively find a way forward to unlock the value of Russian sovereign assets immobilized in our jurisdictions for the benefit of Ukraine,” she said. Yellen added that “this will be a key topic of conversation during G7 meetings this week.” Asked about details of the $50 billion aid package, a senior US Treasury official told reporters on Friday that “we’re certainly trying to make progress on this issue,” without committing to specifics. Yellen, in the prepared remarks, said that countries “need to continue cracking down on Russian sanctions evasion, including through third parties, and sensitive goods that originate in the US and Europe.”
She expects “the need for collaboration and coordination will only increase” in the future between Washington and allies. — AFP