(Newsworthy.news) – As China continues to import products into the United States at lower prices than American-made infrastructure, concerns that the American economy will face greater risks persist.
The Biden administration is reportedly taking into consideration possible actions to ensure that the United States can effectively compete with China, including an investment of American infrastructure and factories that exceeds $2 trillion.
Chinese manufacturers are following the example of the American industry, which has ramped up efforts to manufacture electric vehicles, solar panels and semiconductors. However, products issued by Beijing are generally produced at a considerably less expensive rate.
China’s efforts to produce cheaper yet identical products to the United States market have been criticized by American officials, who claim that this game plan is in violation of international trade regulations.
The current controversy between the two national markets is reminiscent of when the Chinese industry pushed national manufacturing of solar, which was a key motivation of the Obama administration’s response to the aftermath of the 2008 stock market crash. At that time, the federal government issued tariffs on Chinese solar equipment.
During the current controversy, some members of the Biden administration fear a similar situation could arise, threatening to shut down American factories despite the federal government’s extensive investments in domestic manufacturing. It is anticipated that tariffs will be raised as it relates to products such as electric vehicles that are made in China.
According to a January 5 letter sent by Congress to the White House, federal lawmakers are also concerned that the American economy will be overrun with semiconductors from China. Congress has inquired about the possibility of imposing a new tax specifically for chips that are inserted in imported products.
The recent letter came two months after a similar proposal from the same congressional committee recommended a tax on electric vehicles manufactured in China.
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