Janet Yellen expressed concern about China’s industrial capacity, which far exceeds global demand in key sectors such as electric vehicles, lithium-ion batteries and solar energy. In her view, this glut could jeopardize the development ofclean energy industries, particularly in emerging markets. Yellen stressed that this issue would be a priority at the G7 meeting in Italy.
Western countries’ concerns
The massive subsidies injected by the Chinese government into green technologies are causing concern in the West. Low-cost products could flood the world market, putting foreign competitors at risk. Beijing, for its part, believes that these fears are unfounded. Yellen emphasized the need to support healthy green technology sectors in the US, Europe and around the world, not just in China.
Call for Transatlantic Collaboration
Yellen stressed the importance of collaboration and coordination between Europe and the United States in the face of China’s growing power. She warned that business viability could be at risk if the two powers fail to act strategically and in solidarity. Washington has already taken unilateral action, imposing new tariffs on Chinese high-tech products, but Yellen indicated that joining forces to express a common view would be beneficial.
Europe’s reactions and measures
The European Commission has launched investigations into Chinese subsidies for green technologies. Beijing reacted strongly, warning that this could damage economic cooperation with China. However, Yellen said that it is useful for Europe and the United States to come together to express a common viewpoint towards China, even if they don’t need to act identically. Janet Yellen’s speech in Frankfurt and her statements in the Sky News interview highlight the challenges posed by China’s overproduction of clean energy. Transatlantic collaboration is an essential strategy for countering these threats and ensuring the sustainable development of green technologies worldwide.
