Yellen warns China’s surplus of solar panels, EVs could be dumped on global markets

“The Biden administration also recognizes that these investments are new,” Yellen said Wednesday.

Meanwhile, China has been pouring billions into clean energy for years, outpacing the rest of the world in the energy transition.

Yellen added that the more China’s clean energy glut interferes with global market prices, the worse off supply chains for these energy sectors will be.

“President Biden is committed to doing what we can to protect our industries from unfair competition,” Yellen said.

The Chinese Embassy in Washington did not immediately respond to a request for comment.

Yellen’s comments highlight ongoing U.S.-China trade tension even as the two countries try to steady relations.

President Joe Biden met with Chinese President Xi Jinping in November as an olive-branch effort to break the ice after years of tension, marked in part by a tariff war launched by former President Donald Trump.

Trump has floated reinstating significant tariff levels on Chinese products if he wins a second presidential term.

In the time since the Biden-Xi meeting, strengthening U.S.-China relations has proven a precarious effort due to ongoing cybersecurity and trade concerns.

In February, Biden launched an investigation into Chinese smart cars, which he said pose a national security risk because they connect to U.S. infrastructure when they drive on American roads.

“China is determined to dominate the future of the auto market, including by using unfair practices,” Biden said in a February statement. “China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch.”