US Treasury Secretary Janet Yellen during a press conference at the residence of the US Ambassador to China in Beijing on April 8, 2024 (AFP/Pedro Pardo)
Washington “will not accept” the flood of Chinese products sold at a loss on the world market, as has already happened in the past, said American Treasury Secretary Janet Yellen on Monday, traveling to China.
China’s production “overcapacity” was at the heart of Ms. Yellen’s trip, her second in less than a year to the Asian country.
The Minister of Finance arrived in Canton (south) on Thursday and is due to leave Beijing on Tuesday morning.
Citing the example of steel, more than ten years ago, whose Chinese influx “decimated industries across the world and in the United States”, Ms. Yellen declared to the press: “I I made this clear to President Biden and I will not accept that reality again.”
“I know that these serious concerns are shared by our allies and partners, both developed and developing economies,” she added.
The United States fears that the Chinese government’s massive subsidies in technologies – green energy, electric vehicles and even batteries – will lead to a tidal wave of low-cost products around the world which would endanger foreign competitors in these sectors.
– “Unfounded” –
A subject discussed at length during discussions between Ms. Yellen and Vice Prime Minister He Lifeng, responsible for economic issues within the Chinese Communist Party (CCP): these lasted approximately 11 hours, over a period of two days.
Janet Yellen was also received on Sunday by Prime Minister Li Qiang and both showed their desire to strengthen dialogue, despite the differences between the world’s two leading economic powers.
US Treasury Secretary Janet Yellen and Chinese Central Bank Governor Pan Gongsheng at the headquarters of the Chinese monetary institution in Beijing on April 8, 2024 (AFP/Pedro Pardo)
She said she was particularly concerned about “imbalances” in the Chinese economy, including low household consumption and overinvestment, “worsened by large-scale government support in certain industrial sectors.”
Beijing has so far brushed aside concerns about its strong support for its industries.
“The accusations of +overcapacity+, by the United States and Europe, are unfounded,” Minister Wang Wentao declared on Sunday, traveling to Paris, according to the state agency New China.
Ms. Yellen’s visit marks a new stage in the stabilization of diplomatic relations between the two powers, who have resumed their cooperation on climate change, debt restructuring and the fight against money laundering.
– No “surprises” –
The two countries agreed to continue discussions on excess production capacity.
But, according to comments reported by Xinhua, Li Qiang told his American interlocutor that Washington should look at the subject of the country’s production capacity “objectively” and “with the market in mind.”
Janet Yellen also said she had “difficult conversations about national security,” warning Chinese officials about the consequences of providing military support to Russia and resorting to economic measures in the name of national security. .
For their part, the United States will not take “surprise” economic measures in terms of national security, assured Ms. Yellen.
“While the United States must continually evaluate its national security measures, given the rapid pace of technological developments, we are committed to not taking surprise actions,” she said.
But “we would appreciate transparency from China about its national security actions and more clarity on how it demarcates what is national security and what is economic.”
Yun Sun, an expert from the Stimson Center think tank, draws a rather positive assessment of Ms. Yellen’s trip and her meetings with Chinese officials, which allowed her to express American concerns and “test” the Chinese reaction.
But China should not change its growth model immediately, she warns, because its economy “is not in its best shape.”
However, the fact that the two powers agree to cooperate in certain areas such as the fight against money laundering will boost bilateral confidence, believes the expert.
© 2024 AFP
Did you like this article ? Share it with your friends using the buttons below.
