China's Green Energy Boom: The US Faces a Tough Competition

A report by Lea Fayad, English adaptation by Nadine Sassine

If you're looking to buy something and searching for a cheaper option, chances are your choice will be China. 

As the world's largest exporter, many of its companies compete globally in various industries such as clothing, electronics, equipment, and more. But this doesn't sit well with the United States, especially in the field of clean and green energy.

US Treasury Secretary Janet Yellen warned during her visit to China last week about China's economic model, which involves significant government support for investments in the green energy sector, particularly in solar panels, electric vehicles, and lithium batteries. 
The production in these sectors has grown far beyond what the Chinese market can absorb.

Yellen highlighted the risks posed to global and US companies and workers, placing them in an unfair competitive situation. 

In response, President Joe Biden's administration is trying to increase domestic manufacturing in these three sectors by offering unprecedented government incentives, seeking to satisfy manufacturers ahead of the upcoming US elections.

The US is also concerned about a repeat of the "China shock" scenario that occurred about a decade ago. During that time, China's massive support for steel production and selling it below cost led to the global market being flooded and resulted in the destruction of industries and the loss of around two million jobs in the United States.

So far, China has ignored US warnings, and observers speculate that the US may impose tariffs on Chinese green energy exports to limit its dominance in the sector. But can the US manage this? The numbers suggest that it won't be easy.

· China dominates over 80% of the global solar panel industry and produces double its own needs, according to the International Energy Agency.

· Chinese company BYD was the world's top seller of electric vehicles at the end of last year, competing fiercely with US company Tesla, which regained its position as the largest seller at the beginning of this year.

·  In terms of lithium batteries, which power electric vehicles, China still accounts for more than half of global sales.