Washington, China's excess industrial manufacturing capacity has significant spillover effects around the world, the Joe Biden administration said on Wednesday, noting that addressing these challenges may justify taking defensive measures to protect businesses and workers. , and that the traditional toolkit of trading actions may not be enough.
"We are increasingly concerned that China's persistent macroeconomic imbalances and non-trade policies and practices pose a significant risk to workers and businesses in the United States and the rest of the world. We are concerned that these features of China's economy China could lead to industrial overcapacity. "This has significant spillover effects around the world and may compromise the collective resilience of our supply chain, given the resulting excessive concentration in some manufacturing sectors," said Undersecretary for International Affairs, Jay Shambaugh.
The United States, along with its allies and partners in both developing and advanced economies, share mutual goals to address China's policies that have negative economic effects on its businesses, workers and economic resilience, he added.
"Addressing these challenges may justify us taking defensive measures to protect our businesses and workers, and the traditional toolkit of trade actions may not be sufficient. More creative approaches may be necessary to mitigate the impacts of China's overcapacity." "We must be clear: Defense against overcapacity or dumping is not protectionist or anti-trade, it is an attempt to safeguard companies and workers from distortions in another economy," Shambaugh said.
"However, the best outcome would be for China to recognize the growing concerns among its major trading partners and work with us to address them. We will take defensive measures if necessary, but we would prefer that China take action itself to address macroeconomic forces and that are generating the potential of a second 'China shock' for its main trading partners," he said.
"China could boost consumption by strengthening its safety net, raising household incomes and reforming its internal migration rules. It could better support services, not just manufacturing. It could reduce harmful and wasteful subsidies. All of this would be in its own interest. from China and would reduce tensions," the Treasury official said.
In his remarks, Shambaugh said the United States is not isolated in its attempt to address the negative effects of China's non-trade practices.
"The EU and Turkey have also recently imposed tariffs on Chinese imports of electric vehicles. Mexico, Chile and Brazil have taken trade measures on Chinese steel, and India is using tariffs and other trade tools to defend its solar manufacturers from the Chinese dumping. And although each country has its own concerns and needs, the underlying reason is undeniable," he said.
"As G7 leaders and finance ministers have stated, China's overcapacity undermines our workers, industries and economic resilience and security. The United States will act and we will not be alone," he said.
"We are increasingly concerned that China's persistent macroeconomic imbalances and non-trade policies and practices pose a significant risk to workers and businesses in the United States and the rest of the world. We are concerned that these features of China's economy China could lead to industrial overcapacity. "This has significant spillover effects around the world and may compromise the collective resilience of our supply chain, given the resulting excessive concentration in some manufacturing sectors," said Undersecretary for International Affairs, Jay Shambaugh.
The United States, along with its allies and partners in both developing and advanced economies, share mutual goals to address China's policies that have negative economic effects on its businesses, workers and economic resilience, he added.
"Addressing these challenges may justify us taking defensive measures to protect our businesses and workers, and the traditional toolkit of trade actions may not be sufficient. More creative approaches may be necessary to mitigate the impacts of China's overcapacity." "We must be clear: Defense against overcapacity or dumping is not protectionist or anti-trade, it is an attempt to safeguard companies and workers from distortions in another economy," Shambaugh said.
"However, the best outcome would be for China to recognize the growing concerns among its major trading partners and work with us to address them. We will take defensive measures if necessary, but we would prefer that China take action itself to address macroeconomic forces and that are generating the potential of a second 'China shock' for its main trading partners," he said.
"China could boost consumption by strengthening its safety net, raising household incomes and reforming its internal migration rules. It could better support services, not just manufacturing. It could reduce harmful and wasteful subsidies. All of this would be in its own interest. from China and would reduce tensions," the Treasury official said.
In his remarks, Shambaugh said the United States is not isolated in its attempt to address the negative effects of China's non-trade practices.
"The EU and Turkey have also recently imposed tariffs on Chinese imports of electric vehicles. Mexico, Chile and Brazil have taken trade measures on Chinese steel, and India is using tariffs and other trade tools to defend its solar manufacturers from the Chinese dumping. And although each country has its own concerns and needs, the underlying reason is undeniable," he said.
"As G7 leaders and finance ministers have stated, China's overcapacity undermines our workers, industries and economic resilience and security. The United States will act and we will not be alone," he said.
