White House National Economic Adviser Lael Brainard highlighted on Thursday the significant impact of China’s industrial capacity and exports on investments in the United States.
Speaking at the Center for American Progress, a liberal think tank, she emphasized the challenges posed by China’s size and influence in the global market.
“China is now simply too big to play by its own rules,” Brainard stated. “China’s industrial capacity and exports in certain sectors are now so large, they can undermine the viability of investments in the U.S. and other countries.”
Earlier this week, President Joe Biden announced substantial tariff increases on various Chinese imports, including electric vehicle (EV) batteries, computer chips, and medical products.
This move was part of a broader strategy to protect American industries from being overwhelmed by Chinese competition.
In response, China vowed to retaliate against the tariff hikes.
The Chinese commerce ministry expressed strong opposition to the U.S. tariffs and declared that Beijing would take necessary measures to defend its interests.
Brainard further cautioned that a new wave of Chinese policy-driven overcapacity and export surges could have detrimental effects on American workers and industries.
She warned that such practices could undermine market-based innovation and competition, as well as America’s supply chain resilience.
“We have learned from the past. “There can be no second China Shock here in America,” Brainard affirmed, referencing the economic disruption caused by China’s rapid industrial growth in previous decades.
Additionally, Brainard mentioned that the United States would collaborate with Mexico to address concerns about Chinese steel and auto exports potentially entering the U.S. market through Mexico.
This cooperation aims to prevent circumvention of the new tariffs and protect American industries from unfair competition.
The Biden administration’s recent actions and Brainard’s remarks underscore the ongoing tension between the United States and China over trade practices and economic policies.
The new tariffs and the anticipated Chinese retaliation signal a continued struggle for dominance in key industrial sectors, with significant implications for global trade and economic stability.