U.S. Treasury Secretary Janet Yellen on Monday concluded the fourth and final full day of her April 8 trip to China, with future talks between the U.S. and China focused on the need for a shift in Beijing's industrial and economic policies. He said he could guess. .
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She is scheduled to arrive in Guangzhou on Thursday and leave Beijing on Tuesday.
Yellen said China's plans for the country's economy were discussed in conversations with Chinese officials during her visit, but she did not elaborate. Yellen also declined to say what measures the United States might use to prevent China's industrial policies from leading to U.S. job losses.
He noted that dialogue between the United States and China will continue at the International Monetary Fund and World Bank Group's spring meetings in Washington, DC, later this month.
China's industrial overcapacity, or overproduction of goods that undercuts global competitors in price, is increasingly a point of international concern. Other countries argue that such production is often heavily subsidized.
However, Yue Su, chief economist for China at the Economist Intelligence Unit, said the Chinese government's concerns about oversupply are not about global trade, but about deflationary aspects, the negative impact on the health of the banking sector, and fiscal stress on local governments. He said there is a tendency to focus.
“We expect more anti-subsidy and anti-dumping investigations into Chinese manufacturing throughout the year, especially as inflation concerns fade for many developed countries,” Su said. “This investigation may also extend to China's overseas factories, including those in ASEAN countries.”
Asked about potential solutions, Yellen pointed to how China could increase domestic demand relative to supply by providing additional support for retirement and children's education.
The high cost of living, including housing and medical costs, has led many Chinese people to save rather than spend.
Yellen acknowledged that efforts to reduce industrial overcapacity and boost domestic demand will not be resolved quickly.
“This is an issue that has been discussed in China for more than 10 years,” she told reporters.
Consumer demand in China did not recover from the pandemic as quickly as many analysts had expected. In contrast to the US and Hong Kong governments, the Chinese government did not issue stimulus checks and instead focused on reducing business taxes and fees.
China is also working to strengthen its technological capabilities as the United States tightens restrictions on Chinese companies' access to technology.
Both the U.S. and Chinese governments increasingly cite national security as the reason for new measures.
Yellen said Monday that the two countries have and should continue to exchange information on the use of economic instruments in national security. “We try not to have any surprises,” she said.
During her visit, Yellen met with senior Chinese officials, including Premier Li Qiang in Beijing and Vice Premier He Lifeng in Guangzhou.
“Over the past year, we have put our bilateral relationship on a more stable footing,” Yellen said in prepared remarks for Sunday's meeting with Lee.
“This doesn't mean ignoring our differences or avoiding tough conversations,” she said. “It means understanding that we cannot move forward unless we communicate directly and openly.”
In a readout from China, Li said Beijing wants the United States to adhere to market economy norms and avoid politicizing trade issues. He said the development of China's new energy industry will make an important contribution to global carbon neutrality efforts.
The U.S. and China agreed to “intensive exchanges on balanced growth of the domestic and global economies,” according to a Treasury Department statement after Yellen's meeting with Vice Premier He.
The two countries also agreed to “start joint cooperation and exchanges between the Ministry of Finance and the People's Bank of China on anti-money laundering, in order to expand cooperation against illicit finance and financial crimes,” the statement said.
The Chinese side did not explicitly mention such an agreement, but said the two sides planned to maintain communication. The Chinese government also “expressed serious concerns” about U.S. trade restrictions.
A Chinese article described the talks as “constructive,” noting that there were conversations about “balanced economic growth,” “financial stability,” and “anti-money laundering.” According to a translation by CNBC.
During his visit, the U.S. Treasury Secretary also met with Finance Minister Lan Huao'an, the mayors of Beijing and Guangzhou, representatives of U.S. companies, and professors and students from Peking University.
