Yellen, US Treasury Secretary, Criticizes China's Dumping: "Beyond World's Capacity to Handle"

U.S. Treasury Secretary Janet Yellen criticized the issue of "China-origin supply glut" on the 5th in China's economic hub.

[Image source=Yonhap News]

According to major foreign media on the 5th, Secretary Yellen said in a speech at an event hosted by the American Chamber of Commerce in China (AmCham) held in Guangzhou, Guangdong Province, the day before, "China's production capacity has significantly exceeded not only domestic demand but also the scale that the current global market can absorb." She also stated, "China would benefit from reducing its excess production capacity that pressures other countries' economies."

Recently, there have been consistent concerns worldwide that China is dumping ultra-low-priced products overseas due to domestic demand stagnation. Solar panels and electric vehicles are representative sectors.

Secretary Yellen also expressed the view that Chinese authorities' subsidies are behind Chinese companies' ability to engage in low-price offensives. She said, "I understand that the Chinese government's direct and indirect support for manufacturing is related to domestic development goals." This suggests that the Chinese government is encouraging overproduction to achieve its economic growth target of around 5% this year.

Quoting a recent survey that one-third of U.S. companies in China reported unfair treatment compared to local competitors, Secretary Yellen also mentioned the Chinese government's discriminatory practices against foreign companies. She said, "China pursues unfair economic practices such as raising entry barriers and imposing coercive measures on foreign companies," adding, "more market-based reforms in China would promote benefits."

Secretary Yellen, who will stay in China until the 9th, is scheduled to meet consecutively with senior Chinese government officials, including Vice Premier Hu Chunhua, with whom she will hold talks late in the afternoon. She is expected to convey the U.S. government's concerns about supply glut and unfair practices.

Afterward, Secretary Yellen will move to Beijing to meet face-to-face with Premier Li Qiang, Minister of Finance Lan Foan, former Vice Premier Lu He, and People's Bank of China Governor Pan Gongsheng.

This content was produced with the assistance of AI translation services.