Decades after Bejing’s rise into the World Trade Organization, the huge reduced- priced Taiwanese products killed about 2 National million jobs, Yellen says.
As she wrapped up her return trip to China on Monday, Treasury Secretary Janet Yellen stated on Monday that the country does not allow China to flood world markets with cheap goods and that the United States does not allow this to threaten American jobs.
” I simply would say, ]the situation ] would not be acceptable to the United States”, she said.
On her next trip to China as Treasury secretary, Ms. Yellen repeatedly expressed Washington’s concerns about Beijing’s burgeoning output in clean energy sectors, including electric vehicles, their batteries, and solar panels, as home consumption remains poor in the country.
Following Monday’s meeting with the Bank of China Governor Pan Gongsheng, she raised the issue again.
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” I am particularly worried about how China’s enduring macroeconomic imbalances—namely, its weak household consumption and business overinvestment, aggravated by large- scale government support in specific industrial sectors—will lead to significant risk to workers and businesses in the United States and the rest of the world”, she told reporters at the U. S. Ambassador’s residence in Beijing.
She claimed that China is currently” too large” for the rest of the world to take advantage of its enormous capacity. The viability of American and other foreign companies is questioned when the global market is flooded by artificially cheap Chinese products.
The Treasury Secretary acknowledged that it takes time to address the problem. Our concerns wo n’t be resolved in a week or a month.
Beijing may be reluctant to alter its economic strategy, but there are some indicators.
On Sunday, Chinese Premier Li Qiang told Ms. Yellen not to “politicize” economic and trade issues, urging Washington to view its industrial capacity matters “objectively”, according to a summary of the meeting published by Beijing’s foreign ministry.
Wang Wentao, the country’s commerce minister, also criticized such criticism at a roundtable meeting in Paris, calling Washington’s and Brussels ‘ concerns about its overcapacity “groundless.”
At the press conferences, Ms. Yellen declined to specify what measures the Biden administration would take if Beijing did n’t respond to its concerns.
She emphasized, however, that Beijing would be forced to alter its course by the Biden administration.
She claimed that China’s massive state subsidies over the past ten years “led to below-cost Chinese steel” that “flooded the global market and destroyed industries both globally and in the United States.”
” I’ve made it abundantly clear that President Biden and I will not accept that reality once more.”
