Yellen Warns She'll Confront China on Its Energy Subsidies

U.S. Treasury Secretary Janet Yellen said Wednesday that Chinese subsidies for clean energy industries create unfair competition that "Hurts American firms and workers, as well as firms and workers around the world." Yellen said that during a visit she has scheduled to China, she intends to warn China its national underwriting for energy and other companies is creating oversupply and market distortion, among other problems. Yellen said she believes those subsidies will enable China to flood the markets for solar panels, electric vehicle parts and lithium-ion batteries, thus distorting production in other economies and global prices. "I will convey my belief that excess capacity poses risks not only to American workers and firms and to the global economy, but also productivity and growth in the Chinese economy, as China itself acknowledged in its National People's Congress this month," Yellen said. Yellen is set for meetings in China in April, according to Politico. On Tuesday, China filed a complaint against the U.S. at the World Trade Organization, arguing the U.S.'s requirements for electric vehicle subsidies are discriminatory. Yellen said she hopes to have a "Constructive" dialogue with Chinese officials about subsidies and oversupply issues.