US Needs Stronger Measures to Combat China’s Subsidized Overcapacity, Treasury Official Says

‘What we are seeing is a fundamental distortion, driven by government policy,’ says a Treasury official.

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. STR/AFP via Getty Images

The United States needs to take “more creative approaches” to protect its markets, workers, and manufacturing base against China’s heavily subsidized industrial capacity, said Jay Shambaugh, Treasury under secretary for international affairs.

Mr. Shambaugh said traditional measures to counter unfair trade practices, such as tariffs under Section 301, are insufficient to address industrial overcapacity from the Chinese communist regime.