RecentlyGiantsgoldmegawaysIn an interview with US Public Media Economic Radio, US Treasury Secretary Yellen once again hyped the so-called "overcapacity" in China in areas such as electric vehicles and solar energy.GiantsgoldmegawaysHis remarks were questioned by the host.
American radio host Karedar: I would like to ask you about one of the key points of this visit, the problem of overcapacity of electric cars, batteries, and these advanced products you mentioned. Is it possible that we have just been defeated by China in these areas?
Us Treasury Secretary Yellen: we don't think the competition is fair. We believe that China provides large-scale subsidies to areas that they believe are vital to economic development.
American radio host Karedar: do they have more subsidies than our Chip Act and the inflation reduction Act? We [the United States] have invested billions of dollars, and you (the United States Government) have invested billions of dollars.
In August 2022, the inflation reduction Act, signed by US President Joe Biden, allows about $369 billion in subsidies in an attempt to promote the production and application of electric vehicles and other green technologies in the United States through high subsidies. The Chip and Science Act, which was enacted almost at the same time, also allocated about $50 billion to stimulate domestic semiconductor production in the United States, in an attempt to promote the "return" of chip manufacturing to the mainland through huge industrial subsidies and hegemonic provisions to curb competition.
The Ifer Institute of Economics in Germany reported that the US approach poses a threat of "deindustrialization" to Germany, and Germany's industrial structure will be damaged. Kim Chou-hwan, a professor of international industrial informatics at Kyung Kee University in South Korea, said that both the inflation reduction Act and the Chip and Science Act reveal the true nature of US hegemonic thinking.
