A Bloomberg columnist has criticized recent actions by U.S. Treasury Secretary Janet Yellen, labeling the threat of new tariffs on China's green energy exports as a significant economic misstep. Yellen, during her six-day visit to China, expressed concerns that China's investments and fast-growing exports in clean technology could undermine companies in the U.S. and other nations.
David Fickling, the Bloomberg columnist, argues that such protectionist measures contradict over two centuries of economic principles, particularly the concept of comparative advantage. He emphasizes that if a country like China can produce goods at lower costs, raising tariffs only hinders access to affordable and clean technology for the public.
Fickling points out that clean technologies, including solar panels, electric vehicles (EVs), and lithium-ion batteries, represent a small fraction of China's exports, accounting for approximately 5.7% last year. In comparison, China earned more from exports of items like suitcases, furniture, and toys.
The columnist also highlights a contradiction in U.S. climate change policies. While the U.S. and China agreed to triple global renewable energy capacity by 2030, the U.S. simultaneously accuses China's new energy industry of having excess capacity. Fickling argues that the world's demand for lithium-ion batteries and wind power far exceeds current supply, making Chinese investments crucial for global sustainability efforts.
He suggests that the U.S. and European Union's resistance to China's clean-tech advancements stems from internal shifts in their political establishments and major domestic companies' waning support for the energy transition. According to Fickling, unilateral tariffs and political pressure serve as convenient tools for these regions to mask anti-climate protectionism as green industrial policy, especially in the absence of a functional World Trade Organization (WTO).
Reference(s):
cgtn.com
