US Treasury Secretary Janet Yellen has urged the European Union (EU) to adopt stringent measures against the influx of inexpensive Chinese green technologies and to enforce rigorous compliance with sanctions against Russia.
Speaking to European leaders and German bankers in Frankfurt, Yellen highlighted the urgency of addressing China’s escalating exports of cost-effective green technologies, such as solar panels and wind turbines. EU manufacturers report significant undercutting by Chinese competitors, potentially threatening the viability of the EU’s green tech industry.
Yellen argued for a ‘united way’ response, supporting the imposition of 100% tariffs on Chinese goods, a move criticized by some as protectionist but defended by Yellen as necessary to safeguard global industries. This stance comes in alignment with signals from the European Commission that it may soon impose tariffs on Chinese electric vehicles following an investigation into China’s state subsidies.
Concurrently, Yellen pressed German banking leaders to enhance their efforts in enforcing sanctions against Russia. The US Treasury Secretary highlighted new evidence of sanction circumvention, with goods intended for Russian markets being rerouted through third countries like Hong Kong. She stressed the importance of preventing Russia from accessing critical goods and financial systems, crucial for supporting its defense industry.
The EU, grappling with its economic ties to China, aims for a balanced approach, focusing on ‘de-risking’ rather than a complete disengagement. European Commission President Ursula von der Leyen, while expecting to impose tariffs, suggested they would not be as severe as those of the US, aiming instead to match the level of economic damage incurred.
This diplomatic and economic standoff unfolds as global leaders attempt to navigate the complexities of international trade, sanctions enforcement, and geopolitical tensions, underscoring the delicate balance between national interests and global cooperation.
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