U.S. Treasury Secretary Janet Yellen and Chinese Premier Li Qiang engaged in a productive meeting in Beijing, discussing the need for open communication and mutual respect between the two economic superpowers. Yellen emphasized the importance of managing the complex relationship between the United States and China responsibly, particularly addressing China’s excess factory capacity.
During the meeting, Yellen raised concerns about industrial overcapacity in China, specifically in the production of electric vehicles (EVs), solar panels, and other clean energy products. She highlighted the impact that this excess production could have on American workers and firms, advocating for a level playing field to protect U.S. interests.
The discussions between Yellen and Li come as part of ongoing efforts to normalize bilateral economic relations between the two countries. Both leaders acknowledged the progress that has been made over the past year, despite differences and tough conversations that have arisen.
In a further sign of improving ties, U.S. President Joe Biden and Chinese President Xi Jinping recently held a direct talk to manage tensions over the South China Sea. Additionally, U.S. and Chinese military officials met in Hawaii for rare discussions focused on operational safety and professionalism.
Yellen’s visit to China also included meetings with Beijing mayor Yin Yong and an event at Peking University. In Guangzhou, she agreed with Vice Premier He Lifeng to launch a dialogue on “balanced growth,” aiming to address global challenges and protect U.S. workers and businesses.
Despite China’s rapid growth in the EV industry and other cutting-edge technologies, concerns remain about excess manufacturing capacity. Chinese state media have pushed back against these concerns, emphasizing the importance of market-oriented and global perspectives on production capacity issues.
Overall, Yellen’s visit to China underscores the importance of constructive dialogue and cooperation between the world’s two largest economies in managing their complex relationship and addressing pressing global challenges.
