The author is president of the Qianhai Institute for International Affairs at Chinese University of Hong Kong (Shenzhen) and Board Director of the Guangzhou Institute of the Greater Bay Area
During U.S. Treasury Secretary Janet Yellen’s April visit to China, one of the issues covered was the U.S. concern about China’s “overcapacity.” Since late 2023, the U.S. has claimed that in China-U.S. economic relations, the most pressing issue facing the Biden administration is the “threat” posed by China’s exports of green energy products on the U.S.’ trilliondollar industries. On May 14, U.S. President Joe Biden unveiled steep tariff increases on an array of Chinese imports including electric vehicles (EVs), batteries, solar panels and semiconductors.
U.S. policy researchers and media outlets have been creating hype around an “economic war” launched by China. The move aims to convince the world that China, facing economic downturn, is selling cheap goods to the globe to reverse the trend. These sources also claim that Chinese enterprises are calls it “China Shock 2.0,” “a multitrilliondollar sequel to the China shock that hit global manufacturing more than two decades ago.”
