cross-posted from: https://slrpnk.net/post/8375539
Yellen Faces Diplomatic Test in Urging China to Curb Green Energy Exports
Why would we want China to curb their green energy exports? Isn’t that literally the whole point of trying to fight climate change, finding ways to use more green energy?
It might shift the status quo if we shift away from precious freedom fuel (oil) before western govt’s figure it out, sure would be cool if they spent the last thirty years on that instead of clinging to archaic technology.
So basically she’s accusing China of having “industrial overcapacity”, that is to say their production is supposedly higher than the demand.
Arnaud Bertrand wrote a great article on this.
TL;DR: The 3 main signs of overcapacity (capacity utilization rates, inventory levels, and profit margins) for China are all at similar rates as the US, indicating they are not in overcapacity. And they aren’t even selling them at a lower price abroad than at home to beat competition; it’s the opposite. He concludes that China is simply getting too efficient at manufacturing these days and the US is starting to struggle to compete with that, and this is just them trying to convince China to slow down.
I wonder what Yellen has to offer this time, because last July she showed up with nothing and went home with only a tall tale about her “magic mushroom” experience.
