US to vent overcapacity complaints in Beijing talks – Asia Times

US to vent overcapacity complaints in Beijing talks - Asia Times

Washington has been criticizing China for a decade for its dominance in the solar panel industry, but now it is complaining that China heavily subsidized its electric vehicle ( EV ) and semiconductor manufacturers to increase global market shares, resulting in overcapacity that also helped drive prices below rivals ‘ costs.

The Bureau of Industry and Security ( BIS ) of the US Commerce Department started a new survey at the beginning of this year to find out how US businesses are sourcing legacy and current-generation chips ( 28 nanometers or more ).

Foreign Batteries can be a threat to US national security because they can gather enormous amounts of personal information, US Commerce Secretary Gina Raimondo warned on January 30. Washington has never brought up the issue to a national security stage before.

Vice-ministerial financial representatives from the United States and China are then officially scheduled to meet in person on Thursday and Friday in Beijing to explore these and other bilateral trade problems.

According to the reports, a five-person delegation from the US Treasury, led by Undersecretary for International Affairs Jay Shambaugh, may include “frank conversations” with Chinese counterparts about issues like China’s business overcapacity, which the Americans fear had disaster global markets with cheap goods.

An unknown Treasury established told CNN and the New York Times that US authorities will take advantage of the opportunity to voice their concerns about &nbsp, China’s usage of non-market financial practices like government grants.

Overcapacity

As Europe struggled to quit using Russian oil when the Ukraine war broke out in 2022, some critics claimed that northern nations are concerned that they will one day have to pay the price for their excessive emphasis on low Chinese goods. &nbsp,

Instead of China’s industrial policy, according to other commentators, the so-called excess situation in the EV field was brought on by slower-than-expected worldwide demand. They claimed that the majority of people also favor gasoline and diesel vehicles. &nbsp,

In an article published in November 2023, a columnist with the last name Jin from Zhejiang claims that the US should n’t hold China’s subsidy scheme responsible for the overabundance of tradition cards worldwide.

Instead, he claims, the US should take responsibility for China’s decision to switch to producing tradition chips as a result of its chip trade restrictions. He claims that all countries should promote their chipmakers to improve the quality of their goods and boost international cooperation.

difficult to sacrifice

The conference this week will not just open the door for Yellen to return to China this year, but it will also advance a telephone call between Chinese President Xi Jinping and US President Joe Biden. &nbsp,

Jake Sullivan, a US national security adviser, informed the advertising on January 31 that Wang Yi and Xi would speak on the phone “relatively quickly” following their meeting in Bangkok from January 26 to January 27.

However, Foreign columnists do not place a lot of stock in the results of the Thursday conference.

According to Wang Jin, an associate professor at the Institute of Middle Eastern Research at Northwest University, the US has” for a while used unfounded allegations to increase Chinese firms to its Entity List and Chinese military organization list.”

According to him,” the US just wants to stifle Chinese technological advancement and boost its own negotiations chips.” ” We wo n’t rule out that Washington will then impose new sanctions on China, even though the US delegation’s upcoming visit to China showed that Sino-US relations are improving.”

Wang notes that Russia will even take a group to Beijing to observe the 10th of February, which will mark the start of the Chinese New Year. &nbsp,

China and the US are getting along better, but they wo n’t leave Russia alone. After overcoming obstacles up, China and Russia can view each other’s true hearts, he claims. The US will only strengthen its relations and isolate different nations if it keeps applying financial pressure to them.

The likelihood that Chinese or US economic officials may compromise on the other party’s demands in upcoming meetings is extremely thin, according to a Hunan-based journalist using the ink title” Xu Sanlang” in an article that was published last month.

According to Xu,” the US restrictions had a negative impact on our economy.” The proportion of Chinese goods imported into the United States decreased from 22 % in 2017 to 16 % in 2022 as a result of additional tariffs.

According to him, the US regulations have also had a” cold effect” on the Chinese market because multinational corporations believe they have diversified their assets abroad in order to lower their risks. &nbsp,

According to him,” The Sino-US economic relations in the engineering, manufacturing, and business sectors will continue to deteriorate.” We have previously cut back on our reliance on Western primary technology in response to this trend.

He claims that given the high levels of American disapproval of China, it is unlikely that the US will revoke its export restrictions on chips, sanctions against Chinese companies, and additional tariffs imposed on Chinese products. &nbsp,

According to a Chicago Council on Global Affairs survey taken in November, 58 % of Americans—the highest percentage since 1990—see China’s rise to global dominance as an immediate threat to the United States ‘ vital interests.

group of workers

The second meeting between economic representatives from the two nations will take place this week as part of an economic working class that was established in September following US Treasury Secretary Janet Yellen’s trip to China. &nbsp,

Individually, on January 17 and 18, a fiscal working group formed at the same time met in Beijing to discuss issues related to anti-narcotics and money laundering. &nbsp,

Read: Identity chips may be affected by the US-China device battle.

Read: US describes Chinese electric vehicles as a potential safety risk.

At&nbsp, @jeffpao3 is Jeff Pao’s Twitter account.