Yellen assures US 'will not accept' the global market being flooded with Chinese products sold below cost
During her visit to China, Treasury Secretary Janet Yellen revealed that China's production "overcapacity" is a concern "from advanced economies to emerging markets."
Treasury Secretary Janet Yellen stated during her visit to China that the United States "will not accept" that the global market be overwhelmed by undervalued Chinese products.
Yellen, in her four days of meetings with Chinese officials and business leaders, has repeatedly warned about the risks of Beijing's industrial overcapacity. The secretary gave as an example the case of Chinese steel (sold at a low cost) that reached the markets more than 10 years ago and "decimated industries around the world and in the United States" and assured that she "will not accept this reality again":
US committed to 'no surprises' regarding security measures
Yellen also commented that she had "difficult conversations about national security" with Chinese officials. On this issue, she warned that there would be consequences should China support Russia with military supplies. However, she noted that Washington was committed to a "no surprises" policy with its measures to address these actions:
Yellen's visit is intended to focus on China's production "overcapacity." The U.S. is concerned that the Chinese government's massive subsidies to the technology, green and battery sectors will collapse the global market, hurting foreign competitors. The secretary arrived Thursday in Canton, in southern China, and is scheduled to leave Beijing Tuesday morning.