Jay Shambaugh, the under-secretary of the US Treasury for International Affairs who recently led the Washington delegation to Beijing, told the Financial Times on Monday that Washington expressed its concern to China about Beijing's potential plan to address its industrial overcapacity issue by flooding international markets with its goods.
Namely, the United States official affirmed the country's commitment to taking appropriate action should such a scenario materialize. Shambaugh highlighted Washington's primary concern regarding Beijing's dumping of advanced manufacturing goods into global markets, including electric vehicles, solar panels, and lithium-ion batteries.
Last month, the American Chamber of Commerce in China warned that Beijing's industrial overcapacity problem is "here to stay," stressing the risk of China flooding foreign markets with low-priced goods unless the country's domestic demand expanded sufficiently. The European Union opened an anti-subsidy investigation into imports of Chinese electric vehicles in October.
