US oppose flood of below-cost Chinese goods: Yellen

Wrapping up high-level discussions in China, US Treasury Secretary Janet Yellen reiterated the United States’ stance against the inundation of global markets with underpriced Chinese goods, expressing concern over the potential repercussions on industries elsewhere.

During her four-day visit to Guangzhou and Beijing, Yellen emphasized the risks associated with China’s excess industrial capacity, particularly in sectors like solar and electric vehicles. She highlighted the historical impact of Chinese government support leading to a flood of below-cost steel, which adversely affected industries worldwide, including in the United States.

Yellen underscored President Biden’s and her refusal to relive such circumstances, emphasizing the shared concerns among US allies and partners. In discussions spanning around 11 hours with Vice Premier He Lifeng and Premier Li Qiang, Yellen aimed to elevate these concerns to the highest levels of Chinese policymaking.

While Yellen raised apprehensions about imbalances in China’s economy, such as weak household consumption and business overinvestment, Beijing rebuffed overcapacity fears, labeling them as “groundless.”

Amid stabilized bilateral ties and cooperation on issues like climate change and debt restructuring, the US and China have agreed to continue discussions on excess capacity. However, Li urged Washington to adopt an objective and market-oriented perspective on production capacity matters.

Yellen also addressed national security concerns, cautioning against supporting Russia’s military procurement. She stressed the importance of transparency from China regarding its national security actions.

Overall, Yellen’s engagement with senior Chinese officials signals a positive step in conveying US concerns and understanding China’s responses. However, it’s unlikely to prompt significant changes in China’s growth model without substantial consequences. Yet, cooperation in technical areas such as combating money laundering could enhance confidence in bilateral relations. Notably, progress has been observed in resolving specific debt cases, including Zambia’s. (Agencies)