US, China to discuss manufacturing ‘overcapacity’ issue, economic growth
US, China to discuss manufacturing ‘overcapacity' issue, economic growth | Mint Mint
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US and China to Discuss Manufacturing ‘Overcapacity’ Issue, Economic Growth
Introduction
The US and China have agreed to hold “intensive exchanges on balanced growth”, Treasury Secretary Janet Yellen said after she met with her Chinese counterpart He Lifeng in Guangzhou.
Background
Yellen started her five-day visit to one of China’s major industrial and export hubs on Friday–second in the past nine months–amid the rocky ties between Washington and Beijing over TikTok, Taiwan, and access to advanced technology.
However, the ties between the two nations marginally improved since Presidents Joe Biden and Xi Jinping met in San Francisco last November.
Discussion on Balanced Growth
“Agreed that the US and China will hold intensive exchanges on balanced growth in the domestic and global economies. These exchanges will facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity, and I intend to use this opportunity to advocate for a level playing field for American workers and firms,” Yellen said.
Concerns about Unfair Treatment
On Friday, Yellen chided China for “unfair” treatment of American and other foreign companies.
China has pursued “unfair economic practices, including imposing barriers to access for foreign firms and taking coercive actions against American companies,” Yellen said.
Impact on Green Technologies
Chinese government subsidies and other policy support have encouraged solar panel and EV makers in China to invest in factories. The massive scale of production has driven down costs and ignited price wars for green technologies. The West fear that that capacity will flood their markets with low-priced exports, threatening jobs.
Trade Disputes
Last month Beijing accused the US of engaging in “classic protectionism” by seeking to erect barriers to Chinese electric vehicles (EVs) and filed a case with the World Trade Organization over American subsidies for the industry.
Upcoming US Election
For Xi Jinping’s team, the Yellen visit marks one of the final chances to shape American policy before November’s US election. Former President Donald Trump has already threatened a 60% tariff on Chinese goods if elected.
Conclusion
(With agencies input)
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SDG 8: Decent Work and Economic Growth
Economic practices promoting fair competition
Existence of subsidies and policy support for specific industries
Resource efficiency measures
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Source: livemint.com
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