May 22, 2024 - Energy & Climate

U.S. eyes G7 allies as China energy tussle unfolds

Ben Geman

Illustration of the G7 flags falling over — Illustration: Sarah Grillo/Axios

This week's Group of Seven finance ministers meeting may reveal hints about new U.S. and European efforts to counter Chinese strength in climate tech markets.

Why it matters: Officials on both sides of the Atlantic hope to pair carbon cutting with stronger domestic and allied supply chains for solar equipment, electric vehicles, batteries, and more.

Driving the news: Treasury Secretary Janet Yellen on Tuesday said Chinese overproduction "poses a threat to the development of clean energy industries around the world."

Speaking in Germany, she added this will "be a focus at the G7 meetings in Italy later this week," per prepared remarks.
"We want to see healthy green technology sectors, from innovative start-ups to green manufacturing factories, in the United States, Europe, and around the world, not just in China."

Catch up quick: The G7 meeting comes a week after Biden officials unveiled new tariffs meant to keep Chinese EVs from making U.S. inroads, among other things.

Europe is already a big market for these cars. But the EU is probing whether Chinese EVs benefit from excessive subsidies.
New trade penalties could follow.

The intrigue: "German officials are wary of pressing penalties that might incite Beijing to shut out German carmakers such as BMW and Volkswagen," the NYT notes.

What's next: The G7 finance ministers' meeting opens later this week. We'll be watching the multiday event for a joint statement with hints of new steps.

Add Axios on Google

U.S. eyes G7 allies as China energy tussle unfolds

What to read next