Janet Yellen urges EU to join US in curbs on cheap Chinese exports
Yellen's Call: EU to Curb Chinese Exports?
Janet Yellen, the US Treasury Secretary, has called on the EU to join the US in imposing restrictions on low-cost Chinese exports of green technologies such as solar panels and wind turbines. Yellen emphasized the need for a united approach against China's industrial policies, which she views as a threat to global industries. She also urged German banks to enhance compliance with sanctions against Russia, warning of severe consequences for non-compliance, including restricted access to the US dollar.
Meanwhile, the European Commission President, Ursula von der Leyen, indicated that the EU might soon impose tariffs on Chinese electric vehicles following an investigation into China's state subsidies. However, the EU aims to adopt a different approach than the US, focusing on proportionate responses rather than extensive tariffs. The EU's strategy involves investigating over 20 trade sectors to influence China's trade practices while avoiding full-scale trade wars.
What potential consequences did Yellen highlight for German banks if they fail to comply with sanctions against Russia?
Janet Yellen emphasized the serious repercussions for German banks if they fail to adhere to sanctions against Russia. She warned that non-compliance could lead to significant penalties for these banks, including the possibility of being cut off from accessing the US dollar. This measure would severely impact their ability to operate internationally, underscoring the importance of strict adherence to the sanctions to avoid these drastic consequences.
How did Yellen justify the imposition of 100% tariffs on Chinese products despite criticism?
Janet Yellen defended the imposition of 100% tariffs on Chinese products by emphasizing the strategic necessity of responding to China's industrial policies, which she views as a significant threat to the viability of businesses in the U.S. and globally. She argued that without a united and strategic response, the aggressive expansion and undercutting practices of Chinese industries could jeopardize the economic stability of businesses in the U.S. and other countries. Yellen's justification centered on the need for a coordinated approach among Western allies to effectively counteract China's market practices, which are considered detrimental to international trade norms and economic fairness6.