US Treasury: "G7 Must Build 'Counter Barriers' Against China's Overproduction"

"Not a US-China Bilateral Issue... A Threat to the Entire World"

U.S. Treasury Secretary Janet Yellen warned on the 23rd (local time) about the global impact of China's 'overproduction' and urged the Group of Seven (G7) to build a 'wall of opposition.'

According to Bloomberg News, Secretary Yellen made these remarks at a press conference on the day before the G7 Finance Ministers and Central Bank Governors meeting held in Stresa, northern Italy.

U.S. Treasury Secretary Janet Yellen is warning about the global impact of China's 'overproduction' ahead of the G7 Finance Ministers and Central Bank Governors meeting held on the 23rd (local time) in Stresa, northern Italy.
[Image source=AFP Yonhap News]

Secretary Yellen repeatedly emphasized concerns over China's export-oriented industrial policies. She said, "This is not a bilateral issue between the U.S. and China," adding, "Overproduction threatens the viability of companies worldwide, including those in emerging markets."

Calling on G7 countries to join forces, Yellen stressed, "We must unite to send a unified message to China," and "Only then will China understand that it is not facing opposition from a single country, but that its strategy is confronted by a 'wall of opposition.'" However, she said she would not require allies to reflect U.S. tariff policies or closely coordinate trade policy responses.

She also argued that tariffs protect the development of key sectors of the U.S. economy, secure supply chains, and ultimately lower product prices in the long term.

The Biden administration announced on the 14th an increase in tariffs on $18 billion (approximately 24.6618 trillion won) worth of imports from China, including electric vehicles, steel, aluminum, semiconductors, and solar panels. Tariffs on electric vehicles, semiconductors, and medical products are scheduled to be imposed starting August 1. Earlier, European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz also expressed concerns about China's overproduction. The EU is pursuing an anti-subsidy investigation into Chinese electric vehicles and plans to announce preliminary tariffs and other results next month.

At this meeting, G7 ministers are expected to discuss China's response and concerns following the imposition of tariffs. China criticizes the U.S. and its allies for obstructing its economic development. It plans to impose tariffs of up to 25% on EU-made automobiles and has declared it will take firm measures against the U.S. tariff measures.

Additionally, Secretary Yellen stated that if G7 ministers agree on utilizing frozen Russian assets, they will finalize the details before the G7 summit scheduled for mid-next month in Puglia, Italy.