CHINA-UNITED STATES Yellen and the commercial hub between Beijing, Europe and Washington

The US Treasury Secretary in China for the second visit in a few months: on the table is the question of Chinese “overproduction” in the field of renewable energy. The People's Republic is counting on exports of solar panels, electric vehicles and lithium batteries to deal with its economic crisis and fears the imposition of tariffs.

Beijing (/Agencies) – US Treasury Secretary Janet Yellen arrived today in the southern Chinese city of Guangzhou, after the leaders of both powers, Biden and Xi, held a telephone exchange of ideas earlier this week . During the five-day visit, Yellen will address trade issues in a series of meetings, particularly the issue of China's “overproduction.”

Trade is an important aspect of bilateral relations between Beijing and Washington. Trade disputes between China and the Western world are intensifying as Chinese exports in three new technology sectors – electric vehicles, photovoltaic modules and lithium-ion batteries – have soared in recent years. Yellen accused China of offering massive subsidies to the companies that dominate these sectors and warned that the US would not rule out imposing tariffs on Chinese products to protect US industries. Europe is also concerned about the entry of cheap Chinese products into the market. The European Commission announced an investigation into Chinese solar panels over subsidies that would have “distorting” effects on the market.

Yellen will hold two days of talks with Chinese Vice Prime Minister He Lifeng, head of Economy and Finance. She will then travel to Beijing to meet with Chinese Premier Li Qiang, Finance Minister Lan Fo'an, and Central Bank chief Pan Gongsheng. China appears to welcome the visit of Yellen, who is an economist opposed to the imposition of additional tariffs. The official Chinese newspaper China Daily considers the Treasury Secretary an ideal “mediator” due to her pragmatic and positive stance. This is also her second visit to China in the space of nine months; However, analysts believe that it will not be easy for both sides to reach a consensus on trade issues.

Currently, 97% of the EU's solar panels are imported. The collapse in the price of photovoltaic modules has accentuated dependence on Chinese products: European manufacturers face an excess of supply. China's capacity to produce solar panels far exceeded global demand in 2023. With the EU planning to increase the share of renewable energy to 42.5% in 2030, electric vehicles, photovoltaic modules and lithium-ion batteries Lithium play an important role in Brussels' sustainable development strategy.

China hopes that exports will revive its ailing economy. Last year, China's trade surplus increased significantly, with products such as electric vehicles, photovoltaic modules and lithium-ion batteries being the main contributors. Exports of these products increased almost 30%, according to Chinese Prime Minister Li Qiang. China has already become a superpower in the most complex and highest-value-added technological sectors.

The Treasury Secretary's trip comes just hours after the phone call between Biden and Xi, which covered a wide range of topics, from Taiwan to artificial intelligence and security. The future ownership of TikTok is also at the center of tensions between Washington and Beijing. The United States fears that this social network compromises its national security by collecting massive information on American citizens and that its algorithm could be used to manipulate public opinion and spread disinformation. The Biden administration is attempting to transfer ownership of this Chinese company to American businessmen.