Yellen Warns of Global Economic Threat from China’s Overproduction

U.S. Treasury Secretary Janet Yellen has started her visit to China, raising concerns about the overproduction capacity of Chinese manufacturing.

According to Bloomberg News, on the 5th, Secretary Yellen arrived in Guangzhou, southern China, the previous afternoon. This is her first visit to China in seven months since July last year.

During her visit, which lasts until the 9th, she is scheduled to meet with He Lifeng, the Deputy Prime Minister of the State Council of China, who oversees China’s economic policy, and Lan Fo’an, the Minister of Finance.

While aiming to build a better economic relationship between the U.S. and China during her visit, she warned that the overproduction capacity of Chinese manufacturing threatens the world economy.

On the second day of her visit, Secretary Yellen demanded fair competition conditions for American workers and businesses in a meeting with Wang Weizhong, the leader of Guangdong Province, and insisted that open communication is essential in areas where the superpowers have conflicting views.

She continued, “Such areas include the issue of China’s overproduction capacity. The U.S. and other countries worry that this will affect the world.”

Since the in-person summit between U.S. President Joe Biden and Chinese President Xi Jinping last November last year, U.S.-China relations have shown improvement. The two leaders also had a phone call on the 2nd.

However, sharp disagreements remain in some areas, and China’s increased investment in manufacturing to counter the real estate recession exacerbates the conflict.

Secretary Yellen is expected to deliver a speech about the economic relations between the United States and China at an event hosted by the American Chamber of Commerce in Guangzhou today. Following her speech, she will meet with He Lifeng, a prominent bureaucrat in China’s economic sector. After their meeting, they plan to enjoy a dinner and take a river cruise.

On the 6th, she has another meeting and a working lunch with Deputy Prime Minister He, after which she will travel to Beijing. On the 7th, she is set to meet with professors and students at Peking University and has a meeting with Finance Minister Lan. Finally, on the 8th, she is scheduled to meet with former Deputy Prime Minister Liu He and Pan Gongsheng, the People’s Bank of China governor.