Yellen And Biden Say China Might 'Flood' Solar Panels And EVs On Global Markets After Trump Predicted Auto Market 'Bloodbath'

The recent growth in electric vehicles (EVs) continues to be a focal point of the shift in the auto manufacturing market. With companies like Tesla Inc. selling over 1 million vehicles per year, and Chinese automaker BYD Auto Co. Ltd. becoming a growing competitor, the market is in a struggle for global dominance. 

The U.S. and Chinese governments are giving companies in their countries an edge in hopes of securing their top manufacturers as global leaders. But some tactics used by China have drawn criticism from both President Joe Biden, former President Donald Trump and Treasury Secretary Janet Yellen.  

Don't Miss:

• Harvard-founded AI startup is solving paywalls, growing 5x yearly and looking for new shareholders.
• Executives and founders of Uber, Facebook and Apple are bullish on this wellness app that you can coinvest in at $1.15 per share.

Yellen has been outspoken about the economy's volatility. From record inflation to supply chain issues, Yellen helped develop policies to combat issues in the U.S. economy. Yellen recently sounded the alarm on another issue revolving around the competitive nature of the electric vehicle market. 

"I am concerned about global spillovers from the excess capacity that we are seeing in China," Yellen said during a recent speech. "China's overcapacity distorts global prices and production patterns and hurts American firms and workers as well as firms and workers around the world."

The concern is that China plans to, in effect, run American automakers out of business by flooding markets around the world with cheap EVs that American manufacturers can't compete with. This includes electric vehicles, solar panels and other green energy products. 

This issue is causing concerns on both sides of the aisle. 

Trending: Fortnite’s creator company greenlights partial ownership for investors in the upcoming series.

"We're going to put a 100% tariff on every single car that comes across the line, and you're not going to be able to sell those guys if I get elected. Now, if I don't get elected, it's going to be a bloodbath," Trump said during a March 16 speech in Ohio. 

The comment, taken largely out of context by the media, is reminiscent of the concerns Yellen expressed. Both addressed concerns about the impending flood of cheap cars to U.S. markets.

Biden also chimed in on the issue. In February, Biden launched an investigation into Chinese smart cars.

"China is determined to dominate the future of the auto market, including by using unfair practices," Biden said. "China's policies could flood our market with its vehicles, posing risks to our national security. I'm not going to let that happen on my watch."

While it's unclear what specific actions the Biden administration is planning to remedy the issue, it's clear this is a growing concern on both sides of the aisle. Many traditional automakers like Ford Motor Co. and General Motors Co. have struggled to break into the U.S. electric vehicle markets. Both have invested heavily in electric vehicles with Ford postponing several of its planned investments over the years.

Both companies have seen heavy losses in the space. Tesla, despite a record multiyear run, is now down 30% year to date and continues to struggle to compete in China. Chinese makers bringing competition to the U.S. markets could exacerbate these issues. 

Read Next:

• This startup coined “eBay for gamers” with a breathtaking track record has opened up a window to invest in its future growth.
• Long overdue disruption in the moving industry is underway. Here’s how to invest in it with just $100.