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The United States government is ready to take restrictive measures against China to counter its aggressive economic tactics – excessive production of goods to dominate world markets. This was stated by Dalip Singh, deputy international economic adviser in the Joe Biden administration, in an interview with Reuters.
China and its strategy: global dominance through overproduction
According to Singh, China has accumulated enormous economic power in recent years, which it uses to achieve geopolitical goals. The main challenge, according to Washington, is that Beijing is artificially increasing production in strategic sectors such as electric vehicles, batteries, and semiconductors, which far exceeds real world demand.
“This is not an abstract problem. It is clearly measured by numbers. The overproduction is so significant that we must act immediately,” Singh said.
Chinese subsidies and economic dominance
Singh also drew attention to the unprecedented level of subsidies that China provides to its companies. According to him, this allows the country to ensure production even at unprofitable enterprises, pushing competitors out of the market.
This tactic has already proven effective in industries such as steel, solar panels and medical devices. But now it is expanding to new markets, including electric vehicles and semiconductors, strategic sectors in which the US is investing heavily.
“China is saturating these sectors with products that exceed global demand, thus driving out competition,” Singh said.
International response
However, the United States is not the only one concerned about China’s actions. According to Singh, more and more countries are beginning to understand the dangers of China’s overproduction strategy. These include Brazil, India, South Africa, and even the European Union.
The EU, in particular, is already actively trying to reduce its dependence on Chinese goods. Not long ago, former European Central Bank President Mario Draghi warned of a threat from China, and in early October, European officials voted to impose tariffs of up to 45% on imports of Chinese electric vehicles.
A new era of economic confrontation
Beijing and Washington have long been in a state of trade confrontation over issues ranging from tariffs and the origin of COVID-19 to human rights and Taiwan. Now we are on the verge of a new round of economic struggle, where overproduction is becoming a central element.
The United States, together with its allies, is preparing for serious restrictive measures to balance the global market and prevent China’s dominance in strategically important sectors. This struggle could dramatically change the balance of power on the world stage, creating new challenges and opportunities for the global economy.
