U.S. Treasury’s Yellen to return to China, emphasize excess capacity threat

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U.S. Treasury’s Yellen to return to China, emphasize excess capacity threat
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The April 3-9 trip, which will be Yellen’s second in-person visit to China since July 2023, will include a stop in the southern factory hub of Guangzhou before Beijing

U.S. Treasury Secretary Janet Yellen will return to China this week to continue her economic dialogue with top Chinese officials amid a new emphasis on the global threat posed by the Asian superpower’s growing excess industrial capacity, the Treasury Department said on Tuesday.

Biden administration officials said that both Biden and Yellen will be emphasizing the need for China to create a “fair and level playing field” for U.S. workers and companies. Since Yellen’s first visit to Beijing last July, she and He have launched economic and financial working groups that meet virtually. The dialogue so far has been largely focused on discussing key economic issues facing each country and their respective policy responses, such as the property market troubles in China that have undermined consumer confidence, or the failures of two major U.S. regional banks last year.

“Now, we see excess capacity building in ’new' industries like solar, EVs, and lithium-ion batteries,” Yellen said during her trip last week, adding that this was distorting prices and production patterns and hurting workers in the U.S., European Union and other economies.

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