Treasury Secretary Janet L. Yellen raised concerns with her Chinese counterpart regarding China’s increasing exports of low-cost electric vehicles and other green energy products, warning that they pose a threat to American jobs.
She urged Beijing to reconsider its industrial strategy, emphasizing the potential repercussions for Chinese companies if they offer support to Russia’s actions in Ukraine.
The two-day talks between Ms. Yellen and Vice Premier He Lifeng in Guangzhou aimed to address trade and geopolitical tensions between the United States and China, as they work to stabilize their relationship following a challenging period last year.
Both nations agreed to further discussions on combating international money laundering and promoting balanced growth to address issues such as China’s focus on factory production, which has led to a surplus of exports impacting global markets.
Ms. Yellen’s visit focused on addressing the surge of subsidized green technology exports from China, particularly in electric vehicles, batteries, and solar panels, which have raised concerns in the Biden administration.
She stressed the need to address the implications of China’s industrial strategy on the United States, acknowledging the challenges it poses for American firms competing in global markets.
Prior to her meetings with Chinese officials, Ms. Yellen met with American and European executives operating in China to understand their concerns about China’s treatment of foreign firms and the impact of Chinese exports on the global economy.
However, tensions were evident as Chinese officials expressed concerns about U.S. economic and trade measures against China during the talks.
The discussions also touched on Russia’s war in Ukraine, with Ms. Yellen expressing concerns about Chinese companies supporting Moscow’s military.
She stated that the Biden administration has been imposing trade restrictions on Chinese firms violating U.S. sanctions, but expressed hope for cooperation between the two countries on the issue.
Ms. Yellen’s trip will continue with meetings in Beijing, where she is scheduled to meet with Premier Li Qiang and Beijing’s mayor, Yin Yong, to further discuss economic and diplomatic matters.
