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":
I've made it clear that President Biden and I will not accept that reality again. ... I know that these serious concerns are shared by our allies and partners, from advanced economies to emerging markets.
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:
We would welcome transparency from the PRC on its national security actions and greater clarity on where it sees the line between national security and economic issues ... While the U.S. needs to continually evaluate its national security measures given the rapid pace of technological development, we are committed to “no surprises.”
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.
