China’s Overcapacity and EV Dominance Draws Global Concerns

Electric cars for export waiting to be loaded on the "BYD Explorer NO.1", a domestically manufactured vessel intended to export Chinese automobiles, at Yantai port, in eastern China's Shandong province, on Jan. 10, 2024. AFP via Getty Images

Secretary of Treasury Janet Yellen is scheduled to visit China for the second time in April. She will focus on the threat posed by China’s dumping of cheap green energy exports in the United States and around the world. The EU is also concerned about the potential threat to its auto industry and launched its investigation into China’s subsidies for electric vehicles last year.

U.S. Trade Representative, Katherine Tai, stated in the latest annual report that the Chinese regime is targeting industries for global market domination through non-market means.

Yellen’s Visit 

On March 27, Ms. Yellen stated that she would raise the issue of overcapacity with her Chinese counterparts. Speaking at the Suniva solar cell factory in Norcross, Georgia, she warned that China’s export strategy seeks to destabilize global supply chains in industries such as solar energy, electric vehicles, and lithium-ion batteries.