Treasury Secretary Janet Yellen recently visited China and was met with mixed reactions. According to Shehzad Qazi, Managing Director of the China Beige Book International, Yellen may not be the best choice to send a strong message to China due to her reputation as a “dove” in economic matters. Qazi believes that China may not take her warnings seriously.
Qazi also pointed out that the Biden administration is facing challenges with its industrial policy, citing TSMC’s production delays as an example. This could indicate that China is asserting its dominance over the US in certain industries. He highlighted the need for improvement in how the US approaches economic competition with China.
When discussing Yellen’s remarks about potential tariffs on China’s green exports, Qazi noted that the administration will need to take action by 2025. However, he questioned the extent to which the US is willing to impose tariffs on Chinese goods. He mentioned that while the Trump administration took aggressive trade actions, the Biden administration’s approach is more about continuity.
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