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Janet Yellen urges EU to join US in curbs on cheap Chinese exports

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Janet Yellen, the US treasury secretary, has urged the EU to intervene urgently to dampen the growing export levels of Chinese cut-price green technology including solar panels and wind turbines, pushing European leaders to move to a full-scale trade war.

At the same time she urged German bank executives on Tuesday to step up efforts to comply with sanctions against Russia and shut down efforts to circumvent them to avoid potential penalties themselves that could see the US cut them off from dollar access.

Her remarks, in Frankfurt, come just hours after the European Commission president, Ursula von der Leyen, gave her strongest hint yet that the EU would join the US and impose tariffs on Chinese electric vehicles after a soon-to-be completed investigation into alleged state subsidies into the automotive industry in China.

Yellen said it behoved the US and its western allies to react in a β€œunited way” as China’s growing production was a threat to industries in all their markets.

Wind turbine manufacturers in the EU have protested that Chinese rivals are undercutting them by 50% in a move that is appealing to cash-strapped state and regional authorities facing targets in reductions of greenhouse gases.

Von der Leyen said Europe would take a different approach to the US. While an increase in tariffs is expected, they are unlikely tomatch the rate imposed by the US.

Von der Leyen told t he Financial Times that China had β€œmassive overcapacity” that was β€œflooding” the EU market with β€œartificially cheap products”.

She said she expected the investigation into alleged Chinese state subsidies launched last September and due to be finished by 5 June, to conclude there were β€œexcessive production subsidies”

Source: The Guardian

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