As Yellen heads to Beijing, China worries that the U.S. is planning more tariffs on green tech

GUANGZHOU, China (AP) — As U.S. Treasury Secretary Janet Yellen appeals to Chinese leaders to change their domestic manufacturing policies on the second day of an official visit, state media are receiving her message with skepticism, and anxiety about more U.S. tariffs on green energy products.

Yellen, who started her five-day visit in one of China’s major industrial and export hubs, has focused thus far on what the U.S. considers to be unfair Chinese trade practices in talks with senior Chinese officials.

The official Xinhua News Agency wrote Friday night that while Yellen’s trip is “a good sign” that the world’s two largest economies are maintaining communication, “talking up ‘Chinese overcapacity’ in the clean energy sector also smacks of creating a pretext for rolling out more protectionist policies to shield U.S. companies.”

Chinese government subsidies and other policy support have encouraged solar panel and EV makers in China to invest in factories, building far more production capacity than the domestic market can absorb.

The massive scale of production has driven down costs and ignited price wars for green technologies, a boon for consumers and efforts to reduce global dependence on fossil fuels. But Western governments fear that that capacity will flood their markets with low-priced exports, threatening American and European jobs.

In extended meetings with Vice Premier He Lifeng on Friday and Saturday, Yellen reiterated that the U.S. seeks “a healthy economic relationship with China that benefits both sides.” She said if China alters its policies to encourage domestic household consumption instead of subsidizing green energy, that “would be something that’s in China’s interest and it would be something that’s good