WASHINGTON (Reuters) – White House National Economic Adviser Lael Brainard said on Thursday China’s industrial capacity and exports in certain sectors are so large, they can undermine the viability of investments in the United States.
“China is now simply too big to play by its own rules,” Brainard said during remarks at the Center for American Progress, a liberal think tank.
“China’s industrial capacity and exports in certain sectors are now so large, they can undermine the viability of investments in the U.S. and other countries,” she said.
President Joe Biden unveiled steep tariff increases on an array of Chinese imports including electric vehicle (EV) batteries, computer chips and medical products earlier this week.
China vowed retaliation for the tariff decision. Its commerce ministry said Beijing was opposed to the U.S. tariff hikes and would take measures to defend its interests.
Brainard also warned a new cycle of Chinese policy-driven overcapacity and export surges could have adverse consequences for American workers, undermine market-based innovation and competition and America’s supply chain resilience.
“We have learned from the past. There can be no second China Shock here in America,” she said.
She also said the United States will work with Mexico to address concerns that some Chinese steel and auto exports could flow in through Mexico.
(Reporting by Nandita Bose in Washington, Editing by Franklin Paul and Alistair Bell)
