U.S. Treasury Secretary Janet Yellen urged China to address manufacturing overcapacity that poses a risk to global economic stability and to create a fair playing field for American companies and workers.
During her visit to a major industrial and export hub in China, she discussed what the U.S. sees as unfair trade practices with senior Chinese officials.
Yellen emphasized the importance of a balanced economic relationship between the U.S. and China that benefits both parties. She highlighted concerns about Chinese industrial overcapacity and the impact on global markets.
The Chinese officials acknowledged the need to address key concerns raised by the U.S. and emphasized the importance of open communication between the two countries.
Yellen is particularly focused on the issue of overcapacity, particularly in the solar panel and electric vehicle industries. While increased production benefits consumers and green technology efforts, it raises concerns about flooding global markets with low-priced exports.
Yellen’s visit aims to facilitate dialogue on areas of disagreement and address unfair economic practices that affect American companies operating in China.
Chinese officials defended their growth in exports, citing global demand and market dynamics. They also criticized U.S. restrictions on tech exports to China as interfering with free trade.
Yellen emphasized the need for mutual understanding and cooperation to avoid economic disruptions that could arise from China’s industrial policies.
The Alliance for American Manufacturing expressed concerns about the impact of Chinese overcapacity on the U.S. auto sector and called for policy measures to protect national interests.
Yellen indicated that tariffs are not off the table as a response to China’s subsidized manufacturing practices in the green energy sector.