According to media reports, White House National Economic Council adviser Lael Brainard stated on May 16th that China's industrial capacity and the immense volume of exports in certain industries could potentially undermine the feasibility of business investments in the United States.
Earlier this week, U.S. President Joe Biden announced a significant increase in tariffs on a range of Chinese imports, including electric vehicle batteries, computer chips, and medical products.
In response, China's Ministry of Commerce stated that the U.S. raising Section 301 tariffs goes against President Biden's commitments to not seek to suppress or contain China's development and to avoid decoupling from China. This action also contradicts the spirit of consensus reached by the leaders of the two countries, severely affecting the atmosphere for bilateral cooperation. The U.S. should immediately correct its erroneous practices and revoke the tariff measures against China. China will take resolute measures to defend its own interests.
During a speech at the liberal think tank Center for American Progress, Brainard remarked, "China's industrial capacity and the volume of exports in certain industries are now so significant that they could undermine the feasibility of investments in the United States and other countries."
Brainard also cautioned that China's policy-driven surge in excess capacity and exports could have adverse effects on American workers, disrupt market-based innovation and competition, and undermine the resilience of U.S. supply chains. She stated, "We have learned from the past. This will not happen again in America."
Furthermore, Brainard mentioned that the United States will collaborate with Mexico to address concerns about some Chinese steel and automotive exports possibly entering the U.S. through Mexico.
