Janet Yellen: Cheap Chinese Goods Threaten The World Economy

Chris Menahan
Apr. 08, 2024

China is bringing down the world economy by flooding markets with low-priced electric vehicles, lithium-ion batteries and solar panels, according to US Treasury Secretary Janet Yellen.

"Now, we're seeing an increase in business investment in a number of new industries targeted by the PRC's industrial policy, and that includes electric vehicles, lithium-ion batteries, and solar," Yellen said on Monday during a press conference in Beijing. "China is now simply too large for the rest of the world to absorb this enormous capacity."

"Actions taken by the PRC today can shift world prices," she continued. "And when the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question."

We were all told by Milton Friedman and Yellen's predecessors decades ago that states which subsidized production were suckers because we get to buy their goods on the cheap but now we're being told the exact opposite.

The Chinese need to recognize that great economies are not built on manufacturing but instead on exporting debt!

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