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

Green Tech Supremecy: In the ever-evolving landscape of global trade, a new battleground has emerged: the race for dominance in green technology. Treasury Secretary Janet Yellen's recent visit to China has shed light on the escalating tensions between the 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 the Biden administration champions legislative support for similar industries domestically. The fear of China flooding international markets with low-cost products looms large, prompting apprehension not only in the US but also across Europe and Mexico.The Alliance for American Manufacturing's report underscores the magnitude of the threat posed by China's industrial might, with the 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 the US market, signalling a potential return to tariff tactics.While the Biden administration has implemented subsidies to bolster clean energy sectors, China's industrial subsidies dwarf those of the US, posing a significant hurdle in the global economic arena. This asymmetry in support mechanisms amplifies concerns about fair competition and market equilibrium.As both nations gear up for negotiations, the issue is further complicated by China's argument that its green technology exports serve a global environmental imperative. Yet, Beijing also acknowledges the need to address 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 the EV market. Despite the complexities, Yellen remains hopeful about the prospects of dialogue, highlighting the mutual benefits of resolving these trade imbalances.Amidst the uncertainty, one thing is clear: the US-China trade war has entered a new phase, with the battle for green technology supremacy at its core. How this confrontation unfolds will not only shape the future of trade relations between the two economic powerhouses but also have far-reaching implications for the global economy and the fight against climate change.With PTI Inputs

Advertisement

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

Despite the complexities, Yellen remains hopeful about the prospects of dialogue, highlighting the mutual benefits of resolving these trade imbalances.

Advertisement