Treasury Secretary Yellen says US will pressure China to alter policy endangering American jobs

In a bid to protect U.S. jobs and address concerns over China’s industrial policy, Treasury Secretary Janet Yellen engaged in “difficult conversations” with Chinese officials during her four-day visit to Beijing. Yellen emphasized the need for China to change its manufacturing overcapacity, particularly in sectors such as electric vehicles, batteries, and solar energy equipment.

Yellen warned that the flood of low-priced Chinese exports could threaten the viability of American and foreign firms, urging China to shift its policies to promote balanced growth. While it remains unclear how China will respond to these calls, Yellen stressed the importance of addressing the issue to prevent a repeat of past scenarios where Chinese steel imports decimated industries worldwide.

Moreover, Yellen raised concerns about Chinese companies potentially supporting Russia in its war in Ukraine, warning of significant consequences for any banks facilitating the sale of military or dual-use goods to Russia. She emphasized that companies, including those in China, must not provide material support for Russia’s war.

During her visit, Yellen also met with China’s central bank governor, Pan Gongsheng, to discuss economic and trade affairs. The discussions highlighted the need for better coordination of policies to promote new technologies and address overcapacity issues that could impact both China and the global market.

As the Biden administration continues to push for changes in China’s industrial policy, the outcome of these talks could have significant implications for the future of U.S.-China economic relations.