GUANGZHOU, China — U.S. Treasury Secretary Janet Yellen said Saturday that upcoming U.S.-China talks will address a primary concern of the Biden administration, which is that Beijing’s economic model and trade practices put American companies and workers at an unfair competitive disadvantage.
“I think the Chinese realize how concerned we are about the implications of their industrial strategy for the United States, for the potential to flood our markets with exports that make it difficult for American firms to compete,” Yellen told reporters after the announcement during her trip to China.
“It’s not going to be solved in an afternoon or a month, but I think they have heard that this is an important issue to us,” she said.
The two sides will engage in “intensive exchanges” on achieving more balanced economic growth, as stated in a U.S. statement released after Yellen and Chinese Vice Premier He Lifeng held extended meetings in Guangzhou. They also agreed to initiate discussions on combating money laundering. Details about the timing and location of the talks were not immediately available.
Yellen, who traveled to Beijing after starting her visit in Guangzhou, emphasized that the discussions aim to establish a framework for addressing American concerns regarding manufacturing overcapacity in China.
China’s Xinhua News Agency reported that the two sides agreed to discuss various issues related to balanced growth between the U.S., China, and the global economy, as well as financial stability, sustainable finance, and cooperation in combating money laundering.
Yellen stressed the importance of finding a way forward that avoids conflict and benefits the bilateral relationship between the U.S. and China, as well as their relationships with other key countries.
The discussions on balanced growth and money laundering will be conducted within the framework of existing economic and financial working groups established after Yellen’s previous meeting with He in July.
Yellen expressed optimism about joint efforts to address U.S. concerns regarding Chinese companies selling goods to Russia following the invasion of Ukraine, noting that progress has already been made in this regard.
Yellen’s visit to China has been viewed as an opportunity to maintain communication between the two largest economies, although concerns over Chinese overcapacity in the clean energy sector have raised questions about potential protectionist policies by the U.S.
Yellen did not rule out the possibility of tariffs in response to China’s subsidized manufacturing of green energy products, as the U.S. continues efforts to enhance its domestic manufacturing capabilities and safeguard national security.
Yellen is set to meet with senior officials and economists in Beijing on Sunday and Monday to further discuss these important economic and trade issues.
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Moritsugu reported from Beijing.
