Reporter Chen Yousong/real-time reporting 2024-04-25 22:45 ET
On the occasion of U.S. Secretary of State Blinken’s visit to China, U.S. Treasury Secretary Yellen told Reuters on the 25th that the Biden administration “has no options off the table” in dealing with China’s excess industrial capacity , and once again stated that China Achieving full employment through exports is “unacceptable” to the United States and other countries.
Voice of America quoted Reuters as saying that Yellen said during an interview at the “Annual Global Summit” in Washington that the United States is having conversations with China on how to balance domestic and global economic growth. She pointed out that for an economy at a stage of development like China’s, where consumer spending accounts for a very low proportion of gross domestic product and the savings rate is close to 45%, it is necessary to support domestic demand, especially to promote consumption.
Yellen said, “For a large and important economy like China to ultimately achieve full employment through exports, this is unacceptable to the rest of the world.”
Asked about the possibility of imposing new tariffs or taking other actions to protect U.S. manufacturers, Yellen said she would not rule out any possible response. China’s overproduction threatens the viability of manufacturers in the United States, Europe, Japan, Mexico and India, it reiterated that the problem would not be solved “in a day or a week.”
Regarding news that the United States plans to sanction Chinese banks to prevent commercial assistance to Russia, Yellen said she had nothing to announce, but emphasized that this policy option is one that the United States is “prepared to use when necessary.” “We have had in-depth discussions with China on this. I think they understand our position and this is a tool that can be used,” she said.
Yellen said that during her visit to China earlier this month, she “successfully” raised U.S. concerns with Chinese officials about Beijing’s dumping of electric vehicles, solar panels and other clean energy products into the global market, threatening U.S. jobs. She added that Chinese officials “acknowledge” the problem of industrial overcapacity but that they need to address it.
“So, it’s important that China recognizes this concern and starts taking action to deal with it,” she said. “But we don’t want our industry to be wiped out during this period, so I don’t want to take any options off the table.”
Newsessentials Blog 
Posted on April 29, 2024
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