South Bend Times

Today, Congressman Rudy Yakym (IN-02) and Treasury Secretary Scott Bessent addressed concerns regarding China's industrial overcapacity during a Ways and Means Hearing. They highlighted the economic threat this poses to global markets and American industry.

Rep. Yakym emphasized the issue by stating, "China’s industrial overcapacity is not just flooding our markets with cheap goods. It is a direct threat to American workers, manufacturers, and long-term economic security." He commended Secretary Bessent and the administration for their efforts to coordinate with Canada and Mexico in reinforcing what he referred to as "Fortress North America."

Yakym pointed out that China has invested nearly two trillion dollars in increasing factory production over the past four years, leading to a significant rise in exports. He noted that other regions like the EU, Brazil, Indonesia, and Thailand have also imposed tariffs on China due to this issue.

Secretary Bessent provided an update on these efforts, saying, "China accounts for approximately 30% of global manufacturing. They’re on their way to 40%. That is unsustainable." He warned allies about the consequences of China's business model which leads to price deflation in countries such as Europe, Canada, and Australia. Bessent stressed the importance of preventing trans-shipment through routes like Vietnam or via Mexico or Canada under USMCA agreements.

The hearing underscored ongoing international efforts to address the impact of Chinese overcapacity on global trade dynamics.