After two weeks of discussion with Taiwanese Vice Premier He Lifeng, Secretary Yellen made two new plans.
On Saturday, Treasury Secretary Janet Yellen announced that the United States would build two new efforts with China and keep more financial dialogues to address the world’s second-largest economy’s growing overcapacity.
” These marketplaces will help a conversation around economic disparities, including their relationship to overcapacity”, Ms. Yellen said in a speech on Saturday. I intend to use this opportunity to support a level playing field for British businesses and employees.
After announcing the new structure in Guangzhou, a southern Chinese export hub, Ms. Yellen told reporters,” I think the Chinese realize how anxious we are about the implications of their business strategy for the United States, for the potential flood our markets with exports that make it hard for British firms to compete, and that other countries have the same concern.”
China’s overcapacity involves its “entire macroeconomic and industrial strategy”, she said. It wo n’t be resolved in an afternoon or in a month, they say.
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” But I believe they understand why this is a significant issue for us,” he continued.
Exchange on Balanced Growth in the Domestic and Global Economies will be led by the Treasury Department and China’s Ministry of Finance, according to a statement released by the Treasury Department.
Another initiative spearheaded by the Treasury and the People’s Bank of China is aimed at preventing “illicit finance and financial crime.” Officials from the United States and China will have their first conversation about the subject in the” coming weeks.”
According to Ms. Yellen,” this new effort will enable the U.S. and China to share best practices and provide updates on the actions we are each taking to close financial system gaps,” the statement read.
China characterized the two-day meeting between Ms. Yellen and Mr. He as” candid, pragmatic, and constructive”. According to a summary of the meetings that were released by state media Xinhua, the two parties agreed to talk about a number of topics in the two nations ‘ economies and in the areas of “balanced growth” and” sustainable finance.”
Russia
During the two- day talks with her Chinese counterpart, Ms. Yellen also raised Washington’s concerns about the regime’s ties with Russia.
Ms. Yellen said she warned the regime of” significant consequences” if their companies provided material aid to Russia’s invasion of Ukraine.
” We’ve been clear with China that we see Russia as gaining support from goods that China, Chinese firms are supplying to Russia”, Ms. Yellen told reporters.
She was informed by the Chinese side that “it is their policy not to support Russia militarily,” she continued. We do not want this to interfere with our bilateral relationship, neither of us want it. So we’re working together”.
Tariffs
Ms. Yellen travels to Beijing on Saturday afternoon for two more days of talks with senior Chinese officials, including Premier Li Qiang and People’s Bank of China governor Pan Gongsheng.
Steven Hayes, president of the Florida- based advocacy group Americans for Fair Taxation, urged the Treasury secretary to “retaliate” against Beijing’s dumping by restricting Chinese imports and relocating the supply chain.
The Chinese regime is trying to use state subsidies to “destroy” U. S. business, Mr. Hayes said in an interview with NTD on Thursday.
Beijing knows “if they bring products over at a low enough price, that U. S. businesses will not be able to stay in business long enough to compete, because they’re not getting the same subsidies”, he said. Their goals were to “drive American firms out of business,” and they could do so while raising the prices from China and having free rein.
Steven Mosher, president of the Population Research Institute and author of” The Devil and Communist China,” suggested that Washington should impose heavy tariffs on communist China’s industrial overcapacity.
According to Mr. Mosher,” I believe the tariffs should actually be raised to match the level of subsidies that the Chinese Communist Party is providing to the industry.”
” They are very dependent on their export base now, because the domestic sector of the economy is quite blank, ]and ] frankly, floundering”, he said.
” Now, it’s the time to put pressure on them”.
Frank Fang contributed to this report.
