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Treasury Secretary Janet Yellen calls on China to offer a level playing field for U.S. workers and firms as she arrives for trade visit.

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Treasury Secretary Janet Yellen calls on China to offer a level playing field for U.S. workers and firms as she arrives for trade visit.

by Geraldine S.
04/05/2024
in Global Trade, International Relations

U.S. Treasury Secretary Janet Yellen has initiated discussions during her visit to China, urging for measures to address manufacturing overcapacity and ensure fair competition for American businesses. During her five-day visit, Yellen emphasized the importance of maintaining a level playing field for U.S. workers and firms, highlighting concerns about industrial overcapacity and what the U.S. views as unfair trade practices by China.

Speaking at an event hosted by the American Chamber of Commerce in China in Guangzhou, Yellen emphasized the need for open communication between the U.S. and China on areas of disagreement, including industrial overcapacity, which could have global economic implications.

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Yellen also met with American, European, and Japanese business representatives to understand their concerns regarding unfair treatment and trade practices in China. Guangzhou, a major industrial and export hub, provided the backdrop for discussions on issues ranging from semiconductor exports to the dominance of Chinese technology firms like Huawei and BYD in the market.

The concerns raised by Yellen echo broader worries about China’s efforts to export its manufacturing overcapacity, particularly in sectors like green energy and electric vehicles, which could impact global markets and threaten jobs in the U.S. and Europe.

While China has defended its growth in exports as conducive to global green development, Yellen emphasized the need for adjustments in policies to mitigate the risks of economic disruptions on a global scale.

As discussions continue between the U.S. and China, there is anticipation about potential policy measures to address concerns about industrial overcapacity and ensure fair competition in the global market. Yellen’s visit underscores the importance of bilateral dialogue in navigating complex trade issues between the two economic powerhouses.

Your go-to for supply chain report news updates: The Supply Chain Report. For international trade tools, see ADAMftd.com.

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