new York TimesReported today,bidenSome government officials worry that Chinese manufacturing could once again threaten the survival of American factories, at a time when the government is investing heavily to support domestic manufacturing.
The report said that people familiar with the matter said that as a reaction to the increase in tariffs on China by former President Trump four years ago,TariffDue to the policy review, Biden administration officials may increase tariffs on China’s new energy vehicles and other strategic materials. This review has been ongoing since Biden took office and its final results may come in the coming months.
The report notes that while U.S. factories are ramping up production of electric vehicles, semiconductors and solar panels, similar Chinese products are flooding the market, often at much lower prices than their American counterparts. European markets have also been similarly affected.
US trade officials and officials believe China is violating global trade rules. These concerns have sparked new calls for higher tariffs on Chinese imports from Europe and the United States, which could worsen already strained economic relations between China and the West.
The report notes that the United States has imposed tariffs on hundreds of billions of dollars worth of Chinese products over the past five years, believing that the move is a blow to American manufacturers due to the sale of cheap Beijing products in the United States. Can compensate.
Biden has attempted to provide more aid to American companies with larger subsidies to promote the development of clean energy technology manufacturing such as solar panels, new energy vehicles and semiconductors.
However, China’s industrial policy expenditure still far exceeds that of the United States. Faced with an economic slowdown and the gradual bursting of the real estate bubble, the Chinese government has recently stepped up efforts to promote export growth and support output in the manufacturing sector.
Wendy Cutler, vice president of the Asia Society Policy Institute and a former senior US trade official, said China’s clean energy and semiconductor industries have received a lot of government support, including tax credits, access to more affordable energy and capital injections.
“There are countless examples of this. As Chinese companies take advantage of this type of system, it will add more than just capacity,” he said.
Dan Hutchison, vice president of TechInsights, said the worry is that China will do in the semiconductor sector what it has done in shipping, solar cells or steel, which is to accumulate excess production capacity and then drive out foreign competitors. Industry.
“It’s a legitimate concern because the weakness of Western companies is that they have to make profits,” he said.
finance