1 month ago
Treasury Secretary Janet Yellen said Sunday during her travel to Beijing that nan U.S. and China person a "duty" to negociate nan analyzable narration betwixt nan countries responsibly and raised concerns astir nan effect of Chinese firms' overproduction successful respective cardinal industries.
Yellen met pinch Chinese Premier Li Qiang, nan number 2 charismatic successful nan Chinese Communist Party (CCP) down General Secretary Xi Jinping, for 80 minutes successful Beijing connected Sunday and Li said nan U.S. and China should beryllium partners alternatively than adversaries and touted nan "constructive progress" made during her trip. Yellen's travel to China is her 2nd successful nan past 9 months.
"While we person much to do, I judge that, complete nan past year, we person put our bilateral narration connected much unchangeable footing," Yellen said. "This has not meant ignoring our differences aliases avoiding reliable conversations. It has meant knowing that we tin only make advancement if we straight and openly pass pinch 1 another."
Among nan issues that Yellen said nan 2 countries request to person "tough" conversations astir are China's overproduction of electrical vehicles (EVS), star panels and different cleanable power components – which Yellen said person wounded producers and jobs successful nan U.S. and successful different countries.
YELLEN VISITING CHINA TO COMBAT CLIMATE CHANGE, PROTECT INTERESTS OF AMERICAN WORKERS
Treasury Secretary Janet Yellen (L) shakes hands pinch Chinese Premier Li Qiang astatine nan Great Hall of nan People successful Beijing connected April 7, 2024. (Photo by TATAN SYUFLANA/POOL/AFP via Getty Images / Getty Images)
China's subsidies for electrical vehicles person helped Chinese automakers for illustration BYD and Geely summation marketplace stock successful nan world's largest car market, arsenic good arsenic turning China into nan world's largest car exporter pinch accumulation outpacing home demand.
The Economist Intelligence Unit forecasts that China's battery manufacturing capacity will outpace request by a facet of 4 by 2027 arsenic nan EV manufacture continues to grow. That accelerated maturation has meant that excess manufacturing capacity could beryllium betwixt 5 and 10 cardinal EVs per year, according to consulting patient Automobility.
TESLA HAS NEW COMPETITION WITH A CHINESE EV PRICED LOWER THAN MODEL 3
US Treasury Secretary Janet Yellen (L) and Chinas Vice Premier He Lifeng be a gathering astatine nan Guangdong Zhudao Guest House successful nan confederate Chinese metropolis of Guangzhou connected April 5, 2024. (Photo by PEDRO PARDO/AFP via Getty Images / Getty Images)
A elder Treasury Department charismatic later said that China's excess business capacity and nan government's support for those industries were discussed astatine magnitude during nan meeting, and that Li showed immoderate willingness for U.S. and Chinese economical teams research nan rumor further.
Although location were immoderate differences of opinion, "there was not ideological aliases inflammatory pushback," nan charismatic said, according to a study by Reuters. "It was a overmuch much morganatic speech of policymakers."
Chinese authorities media outlet Xinhua connected Sunday quoted Li arsenic saying nan U.S. should "refrain from turning economical and waste and acquisition issues into governmental aliases information issues" and position accumulation capacity from a market-oriented and world perspective.
BUYERS OF TESLA'S CHINESE RIVAL EV MAY FACE MONTHSLONG WAIT FOR SU7
Treasury Secretary Janet Yellen raised concerns astir China's overproduction successful respective business areas during her visit. (Photo by PEDRO PARDO/AFP via Getty Images / Getty Images)
The outlet quoted Li arsenic saying that China's cleanable power sector, wherever overcapacity concerns are astir acute, will support nan world power transition.
"Overcapacity isn't a caller problem, but it has intensified, and we're seeing emerging risks successful caller sectors," Yellen said Friday successful remarks during a gathering successful China's confederate export hub of Guangzhou.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
China has doubled down connected Xi's mantra of unleashing "new productive forces" done investments successful cutting-edge technologies specified arsenic EVs arsenic good arsenic commercial spaceflight and life sciences – areas wherever galore U.S. firms clasp competitory advantages.
Reuters contributed to this report.
