Secretary Yellen: "US-China Agree to Talks on China's Overproduction and Other Issues"

by Kwon Hyeonji

Published 06 Apr.2024 16:20(KST)

Janet Yellen, the U.S. Treasury Secretary visiting China, announced on the 6th that the U.S. and China have agreed to hold additional talks to discuss issues such as China's overproduction, according to foreign media including the Associated Press.

According to reports, Secretary Yellen stated in a press release that day, "The United States and China have reached a consensus to engage in intensive exchanges for balanced growth of both domestic and global economies," adding, "These exchanges will facilitate discussions on macroeconomic imbalances, including those related to the Chinese government's overproduction." She further added, "Through this opportunity, we advocated for a level playing field for American workers and businesses."

[Image source=Yonhap News]

The statement came immediately after a two-day meeting with Vice Premier Hu Chunhua of the State Council, held in Guangzhou, Guangdong Province, southern China, starting the previous day. During the meeting, Secretary Yellen reportedly pointed out the issue of 'China-originated supply overcapacity' and urged China to create a fair competitive environment for U.S. companies and workers.

Recently, criticism has been raised worldwide that China, facing domestic demand stagnation, is engaging in 'deflationary exports' by pushing ultra-low-priced products overseas, especially solar panels and electric vehicles. In the long term, this could result in foreign companies being forced to close due to the low-price offensive originating from China.

Prior to the meeting with Vice Premier Hu, Secretary Yellen also criticized China's overproduction and unfair practices in a speech at an event hosted by the American Chamber of Commerce in China (AmCham) held the previous day.