US Treasury Secretary Janet Yellen's visit to China pressures solar, electric car, and battery manufacturers.

From Yahoo Finance: 2024-04-04 22:04:00

US Treasury Secretary Janet Yellen aims to tackle China’s cheap exports, adding pressure on solar panel, electric car, and battery manufacturers. Major Chinese producers like Longi Green Energy and BYD are underperforming as they struggle with domestic competition. Yellen’s talks in China may shed light on potential tariffs and impacts on equity investors.

Shares of Chinese solar manufacturers like Longi and Trina Solar have dropped this year due to record-low prices and increased scrutiny. China’s dominance in solar cell production threatens US factory plans, despite incentives from President Biden’s Inflation Reduction Act. Speculation suggests China may maintain rapid capacity growth, prompting potential trade barriers from the US.

China’s EV exports have surged over 1,500% in the past three years, primarily to the EU. High tariffs have prevented significant exports to the US. Chinese EV maker BYD’s shares have declined amid domestic price wars. US tax credits are offered for domestic EVs in an effort to counteract Chinese competition and potential tariff evasion.

China dominates lithium-ion battery production, raising concerns about possible duties. Anti-dumping may be unlikely currently due to a battery shortage in Europe. Chinese battery maker CATL has seen shares rise 21% this year, outperforming the market. The debate on excess production in solar panels and batteries continues, with potential risks from tariffs and global growth in the future.



Read more at Yahoo Finance: A Trader’s Guide to China Stocks in Focus as Yellen Visits