Is China set to dominate global EV and green tech markets? Exploring the reasons behind the latest US-China trade dispute | WGN Radio 720

China’s surge in the production of electric cars and green technologies has sparked a new trade fight with the United States, with concerns growing over the impact on global markets. Treasury Secretary Janet Yellen’s recent visit to China highlighted the issue, while former President Donald Trump has made incendiary remarks on the campaign trail.

The U.S. is worried about China’s increased production of cheap electric vehicles, solar panels, and batteries, which could potentially undercut industries in the U.S., Europe, and Mexico. Leading Chinese automaker BYD recently introduced an electric SUV at a remarkably low price, raising concerns about the competitiveness of U.S. carmakers.

Trump has warned of China exporting cars to the U.S. through Mexico, proposing new tariffs to block such imports. The U.S. currently has tariffs on Chinese cars, but Mexico’s free trade agreement with the U.S. could allow Chinese vehicles to enter the market.

The trade fight stems from China’s substantial investment in various industries, including electric vehicles, solar panels, batteries, and steel. The U.S. has also subsidized clean energy and semiconductor producers, but China’s industrial subsidies far exceed those of the U.S.

Both countries have agreed to hold talks on the issue, with China emphasizing the importance of its green products in combating climate change. However, Beijing acknowledges the challenges of manufacturing overcapacity and weak consumer spending in achieving sustainable economic growth.

The rapid expansion of EV production has led to intense price competition, prompting the need for better policy coordination in China. Yellen emphasized the importance of addressing these concerns, signaling a long road ahead in resolving the trade dispute between the two economic powerhouses.