Important points
U.S. Treasury Secretary Janet Yellen said Friday there is growing concern about the impact of China's excess manufacturing capacity on the global economy. She also criticized the Chinese government's “unfair” treatment of American companies and other foreign companies. Yellen called on the Chinese government to return to pro-nationalism. Past market reforms.
US Treasury Secretary Janet Yellen said on Friday, as she began a four-day visit, there was growing concern about the impact of China's excess manufacturing capacity on the global economy.
“Excess production capacity can lead to large-scale exports at low prices,” he said in a speech in the southern city of Guangzhou. He also pointed out that they would also be hit hard. “And that could lead to over-concentration of supply chains, posing risks to the resilience of the global economy,” she said.
He said the European Union had launched an investigation into subsidies for Chinese electric vehicle exports to Europe, and that many countries saw China's overcapacity as “a real growing threat.” “We are very determined to ensure the health of our country's industry, especially EVs,” he said. Batteries and solar power will not go out of business due to artificially cheap exports from China. ”
“Overcapacity is not a new problem, but it has become more serious, creating new risks in new areas. “This has led to production capacity that is significantly higher than what the market is capable of,” she said.
He said Chinese factories risk producing more than the world can easily absorb and that the Chinese government is treating U.S. and other foreign companies “unfairly.” criticized.
In her speech, Yellen said China has pursued “unfair economic practices, including imposing barriers to access to foreign companies and coercive actions against American companies.”
He said a recent study by the U.S. Chamber of Commerce found that one-third of U.S. companies in China report being treated unfairly compared to local competitors. Stated.
Yellen also called on China to return to its pro-market policies of the past. “U.S. companies are also concerned about the impact that a shift in China's market approach will have on the U.S. and global economies,” he said.
