US official blames China for engaging in unfair trade practices
A senior US official has asserted that Chinese lithium producers are saturating the global market, leading to a decline in prices. Read Full Article at RT.com.
TroibNews 
A senior US official has asserted that China is oversupplying lithium to the global market, aiming to eliminate competition and lower prices. According to reports from Reuters, Jose Fernandez, the under secretary for economic growth, energy and the environment at the US Department of State, made his comments during a visit to Portugal, Europe’s largest lithium producer.
Fernandez indicated that China's lithium production exceeds current global demand significantly. He stated, “That is an intentional response by the People’s Republic of China to what we are trying to do” with the Inflation Reduction Act. He further described China's strategy as predatory, noting that they “engage in predatory pricing... lower the price until competition disappears. That is what is happening.”
As the world's third-largest producer of lithium, following Chile and Australia, China plays a crucial role in the production of batteries needed for consumer electronics and electric vehicles. The UN regards lithium as a “pillar for the fossil-fuel free economy,” as it is projected to be essential for energy storage in future clean power grids.
In the past year, lithium prices have plummeted more than 80% due to China's overproduction and a decrease in demand for electric vehicles. Fernandez remarked that this decline in prices “constrains our ability to diversify our supply chains on a broad, global scale,” and suggested it hampers countries like Portugal that require investment to grow their industries.
In an effort to reduce dependency on Chinese lithium, the EU, which currently imports 97% of its lithium from China, is looking to enhance its mining capabilities.
Following an anti-subsidy investigation in July, the EU implemented significant tariffs on electric vehicles imported from China, aiming to protect its manufacturers from the influx of low-priced products. This action came after the US increased tariffs on Chinese electric vehicles from 25% to 100% in May.
China responded by claiming these measures violate global trade regulations, leading it to file a complaint with the WTO regarding what it labeled Washington’s “discriminatory” electric vehicle subsidy requirements. Additionally, Beijing initiated investigations into the imports of EU brandy, dairy, and pork products. Recently, China’s Ministry of Commerce announced provisional tariffs on brandy from the EU.
Rohan Mehta for TROIB News
Fernandez indicated that China's lithium production exceeds current global demand significantly. He stated, “That is an intentional response by the People’s Republic of China to what we are trying to do” with the Inflation Reduction Act. He further described China's strategy as predatory, noting that they “engage in predatory pricing... lower the price until competition disappears. That is what is happening.”
As the world's third-largest producer of lithium, following Chile and Australia, China plays a crucial role in the production of batteries needed for consumer electronics and electric vehicles. The UN regards lithium as a “pillar for the fossil-fuel free economy,” as it is projected to be essential for energy storage in future clean power grids.
In the past year, lithium prices have plummeted more than 80% due to China's overproduction and a decrease in demand for electric vehicles. Fernandez remarked that this decline in prices “constrains our ability to diversify our supply chains on a broad, global scale,” and suggested it hampers countries like Portugal that require investment to grow their industries.
In an effort to reduce dependency on Chinese lithium, the EU, which currently imports 97% of its lithium from China, is looking to enhance its mining capabilities.
Following an anti-subsidy investigation in July, the EU implemented significant tariffs on electric vehicles imported from China, aiming to protect its manufacturers from the influx of low-priced products. This action came after the US increased tariffs on Chinese electric vehicles from 25% to 100% in May.
China responded by claiming these measures violate global trade regulations, leading it to file a complaint with the WTO regarding what it labeled Washington’s “discriminatory” electric vehicle subsidy requirements. Additionally, Beijing initiated investigations into the imports of EU brandy, dairy, and pork products. Recently, China’s Ministry of Commerce announced provisional tariffs on brandy from the EU.
Rohan Mehta for TROIB News
