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In a recent speech at Suniva, a solar company in Georgia, USA, US Treasury Secretary Janet Yellen expressed her growing discomfort over the state of the green energy sector. The main concern is China, which now has a growing surplus of green energy products, such as EVs, lithium-ion batteries and solar panels, that she is worried will soon start being 'dumped' onto world markets.

An influx of green products from China could lead to a drop in prices worldwide, creating fresh challenges for the West and, particularly, the US's up-and-coming green manufacturing industry.

"The spillover from China's excess production will distort global prices and production to the detriment of American and global workers and businesses alike," she remarked.

During the speech, Yellen shared her strategy to address these concerns directly with Beijing.

"I plan to make it a key issue in discussions during my next trip there," she said. "I will press my Chinese counterparts to take necessary steps to address this issue."

This issue has come to the fore as the US makes strides to promote its own clean energy sector. Through legislative measures, including the 2022 Inflation Reduction Act and the CHIPS and Science Act, the White House has been laying the groundwork for a stronger US clean energy industry. Yellen herself has spoken about the positives coming from these investments, especially in the EV market, despite a recent fall in vehicle sales, low resale values, and a lack of willingness for dealers to take on secondhand electric cars. The additional cost to repair them has also had a negative affected on insurance premiums for EVs.

However, the challenge remains catching up with China, which has long had the financial might of the state funding the transition to clean energy and pumping billions into developing its green sector and outdoing global competition.

Yellen's remarks highlight the broader issue of possible ripple effects from China's clean energy surplus on global markets and supply chains. The Biden Administration, she says, is committed to protecting American businesses from any unfair competitive practices that may arise.

As U.S.-China trade tensions continue, Yellen's comments emphasize the complex nature of maintaining healthy international relations while looking out for national interests. The ongoing efforts to improve U.S.-China relations in areas ranging from cybersecurity to trade show the delicate balance required.

Yellen's concerns are not just a call for policy changes but also a reminder of how interconnected the clean energy industry is. As the US and China work on their trade relations and commitments to green energy, the world watches, hoping for a resolution that improves cooperation and fair competition.