Trade War Escalates as US-China Clash Over Green Tech Supremacy

Green Tech Supremecy: In ever-evolving landscape of global tre, a new battleground has emerged: race for dominance in green technology. Treasury Secretary Janet Yellen's recent visit to China has shed light on escalating tensions between world's two largest economies, fueled by China's rapid expansion in electric vehicles (EVs) and renewable energy sectors.

China's aggressive production surge in EVs, solar panels, and batteries has ignited concerns in Washington, particularly as Biden ministration champions legislative support for similar industries domestically. fear of China flooding international markets with low-cost products looms large, prompting apprehension not only in US but also across Europe and Mexico.

Alliance for American Manufacturing's report underscores magnitude of threat posed by China's industrial might, with country's auto industry singled out as an "existential threat" to US automakers. Former President Donald Trump, in characteristic fashion, has warned of potential backdoor routes for Chinese car exports into US market, signalling a potential return to tariff tactics.

While Biden ministration has implemented subsidies to bolster clean energy sectors, China's industrial subsidies dwarf those of US, posing a significant hurdle in global economic arena. This asymmetry in support mechanisms amplifies concerns about fair competition and market equilibrium.

As both nations gear up for negotiations, issue is furr complicated by China's argument that its green technology exports serve a global environmental imperative. Yet, Beijing also acknowledges need to dress manufacturing overcapacity and stimulate domestic consumer spending for sustained economic growth.

Amid price wars and industry sustainability concerns, strategic planning and policy coordination are becoming imperative for China to navigate its rapid expansion in EV market. Despite complexities, Yellen remains hopeful about prospects of dialogue, highlighting mutual benefits of resolving se tre imbalances.

Amidst uncertainty, one thing is clear: US-China tre war has entered a new phase, with battle for green technology supremacy at its core. How this confrontation unfolds will not only shape future of tre relations between two economic powerhouses but also have far-reaching implications for global economy and fight against climate change.

With PTI Inputs