U.S. Treasury Secretary Calls for a 'Wall of Opposition' from G7 Against China's Industrial Policies

On Thursday, June 3, U.S. Treasury Secretary Janet Yellen stated that she is urging G7 member countries to express their opposition to China's industrial policies. She added that she will present her request at the financial meeting of the seven industrialized nations this week. During a media conference, Yellen also mentioned that she is seeking a 'general agreement on the concept' from G7 finance ministers and central bank governors regarding a plan to utilize the revenue from approximately $300 billion of frozen Russian assets, which could provide significant financial support for Ukraine. These two issues are expected to be discussed at the G7 finance ministers and central bank governors meeting in northern Italy on Friday and Saturday. Yellen noted that many countries outside the G7, including Mexico, India, and South Africa, are concerned about China's excessive investment in electric vehicles, solar products, semiconductors, steel, and other strategic industries. The U.S. Treasury Secretary stated that without changes to China's current policies, market-based economies will face a flood of cheap exports from China, posing a threat to domestic producers. She further explained that the U.S. does not want these countries to impose tariffs similar to those of the U.S. on Chinese exports but insists they should coordinate their trade policies in this regard. Yellen emphasized that such coordination would send a unified message to China that it is facing a 'wall of opposition' regarding its strategic policies. She stressed that G7 members will discuss their concerns about China's policies and appropriate response options. The U.S. Treasury Secretary's request comes as the Biden administration has announced new severe tariffs on electric vehicles, batteries, solar panels, and other Chinese products to protect U.S. investments in developing these industries domestically. Yellen urged both the U.S. and Europe to respond to China's excessive investment in electric vehicles, solar products, semiconductors, steel, and other key sectors in a 'strategic and united' manner to keep domestic producers on both sides of the Atlantic alive.