Yellen’s Visit to China
US Treasury Secretary Janet Yellen concluded her four-day visit to China with a pivotal meeting at the central bank, emphasizing the need for Chinese leaders to address excess industrial capacity and stimulate domestic demand.
Concerns on Green-Energy Exports
Yellen’s discussions highlighted concerns regarding China’s rapidly increasing exports in green-energy sectors like electric vehicles (EVs), batteries, and solar panels, supported by considerable state assistance. These exports pose a risk of destabilizing international markets and impacting employment in the US and other countries.
Dialogues with Chinese Officials
During her stay, Yellen engaged in extensive dialogues with key Chinese officials, including Premier Li Qiang and Finance Minister Lan Foan, with the aim of fostering mutual understanding and alleviating tensions between the two largest economies in the world.
- Yellen advocated for a market-oriented approach to address production capacity issues.
- Sustained communication channels between the US and China were highlighted as necessary.
Chinese Response
Despite Yellen’s concerns, Chinese officials defended against allegations of excess capacity, promoting a market-oriented perspective. Premier Li emphasized the importance of avoiding politicization of economic and trade matters, advocating for a global outlook on production capacity.
Chinese Commerce Minister Wang Wentao reaffirmed China’s commitment to innovation and market competition during discussions with Chinese EV manufacturers in Paris. He refuted claims of overcapacity in the EV sector, attributing China’s rapid development to technological advancements and robust supply chains.
