A wind farm generates power for grids in Zhoushan, Zhejiang province. [Photo by YAO FENG/FOR CHINA DAILY]
In a world where economic principles should guide policy and promote progress, the recent appalling stance taken by US Treasury Secretary Janet Yellen during her China visit is a stark departure from logic, reason and objective economic realities. Yellen”s criticism of China’s purported “industrial overcapacity “in the realm of green energy technology not only defies established macroeconomic principles but also threatens world trade and endangers global efforts toward a sustainable future.
At the heart of Yellen’s argument lies a fundamental misunderstanding of comparative advantage, a cornerstone of economic theory for over two centuries, which I learned from my former Ateneo de Manila University economics professor who later became…
