Yellen Pushes for Fair Play for US Workers and Firms in China Visit

During her visit to Guangzhou, a key industrial city in China, U.S. Treasury Secretary Janet Yellen addressed concerns regarding China’s trade practices, emphasizing the need for fair competition between Chinese and American firms and workers. She highlighted issues such as manufacturing overcapacity in China, which she believes poses a risk to the global economy by potentially destabilizing markets with an influx of cheap exports.

In discussions with Chinese Vice Premier He Lifeng and other officials, Yellen pointed out that the extensive government support in China for industries like solar panels and electric vehicles (EVs) leads to excessive production capacity, driving down costs globally but also threatening jobs in America and Europe.

Yellen, the first U.S. Cabinet-level official to visit China since a meeting between President Joe Biden and Chinese leader Xi Jinping, stressed the importance of candid dialogue on contentious topics, including China’s industrial expansion and its implications worldwide.

Guangzhou, the capital of Guangdong province and a manufacturing powerhouse home to companies like Huawei and BYD, served as the backdrop for Yellen’s meetings. She also voiced concerns about the challenges American businesses face in China, including unfair treatment and coercive actions, during an event hosted by the American Chamber of Commerce in China.

Despite China’s defense of its trade practices, citing the global demand for green development, Yellen argued that unchecked industrial overcapacity could lead to significant economic dislocations. She did not dismiss the possibility of using tariffs as a countermeasure to protect U.S. interests against the impact of China’s subsidized production.

The visit underscores the complexities of the U.S.-China economic relationship, with Yellen advocating for adjustments in Chinese policies to avoid global market disruptions and ensure a level playing field for international competitors.