The US and China plan to hold talks on economic growth, including the issue of manufacturing 'overcapacity'

GUANGZHOU, China (AP) — U.S. Treasury Secretary Janet Yellen The upcoming US-China talks will deal with a high-level complaint from the Biden administration, he said Saturday Beijing's economic model And Trade practices Put American companies and workers at an unfair competitive disadvantage.

“The Chinese are realizing how concerned we are about the implications of America's industrial strategy, the possibility of flooding our markets with exports that make it difficult for American companies to compete,” Yellen later told reporters. Notice During his visit to China.

“It's not going to be solved in an afternoon or a month, but I think they heard that this is an important issue for us,” he said.

The two sides will hold “intense exchanges” on more balanced economic growth, according to the US statement released after Yellen and Chinese Vice Premier He Laifeng held two days of extended meetings in the southern city of Guangzhou. They also agreed to launch exchanges to combat money laundering. It was not immediately clear when and where the talks would take place.

Yellen, who arrived in Beijing after beginning her five-day visit to one of China's major industrial and export hubs, said the talks would create a framework for listening to each other's views. American Concerns About high capacity manufacturing in China.

China's official Xinhua News Agency reported that the two sides agreed to discuss various issues, including the balanced development of the US, China and the global economy, financial stability, sustainable finance and cooperation in combating money laundering.

Xinhua said China had fully responded to the productivity issue, but the report did not provide details. According to the agency, China has also expressed deep concern about US trade and economic activities restricting China.

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Chinese government subsidies and other policy support for solar panels and incentives EV makers In China to invest in factories, it creates more production capacity than the domestic market can absorb.

Mass production has driven down costs and fueled price wars for green technologies, a boon for consumers and efforts to reduce global dependence on fossil fuels. But still Western governments They fear that capacity will flood their markets with low-cost exports, threatening American and European jobs.

“It's going to be important for our bilateral relationship going forward and for China's relationship with other important countries, and it provides a structured way in which we can continue to listen to each other and see if we can find a way forward that avoids conflict,” Yellen told reporters.

Exchanges on balanced development and money laundering will take place under the framework of economic and financial working groups set up after meeting him in July.

Yellen struck a positive note about joint efforts to address U.S. concerns about Chinese companies selling goods to Russia following the invasion of Ukraine.

“We think there's more to be done, but I see that as an area where we've agreed to cooperate, we've already seen some meaningful progress,” he said.

State media prior to his visit characterized US concerns about overcapacity as a possible pretext for the tariffs. In a commentary published Friday night, Xinhua wrote that Yellen's visit is a good sign that the world's two largest economies are maintaining ties, adding that “talk about 'Chinese overcapacity' in the clean energy sector creates a pretext for creating more protectionist policies to protect US companies.”

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Yellen told reporters during an Alaska refueling stop en route to China that the U.S. “can't stop” tariffs in response to China's heavily subsidized green energy products.

The U.S. has made efforts through legislation and executive orders to weed out some Chinese technologies in order to build up its domestic manufacturing capabilities. The White House and many members of Congress consider measures critical to maintaining national security.

$280 billion Chips and the Law of Science Passed in 2022, it aims to boost the semiconductor industry and scientific research in an effort to create more high-tech jobs in the U.S. and help it better compete with China. Also, last August US President Joe Biden Signed the executive order Prevent and restrict high-tech US-based investments going to China.

Yellen will hold meetings in Beijing with more senior officials and economists on Sunday and Monday.

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Moritsuku reports from Beijing.

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