- ORIGINAL NEWS
Yellen says U.S. plans to ‘underscore’ need for China to shift policy
- SUMMARY
During a recent visit to China, U.S. Treasury Secretary Janet Yellen discussed the need for Beijing to modify its economic and industrial policies.
She believes this is crucial to avoid negative impacts on the international economy.
Yellen emphasized that future discussions will focus on China’s need to balance its production capacity with its domestic demand.
One approach is to encourage spending on retirement and education, which can help boost consumer demand and reduce overcapacity.
China’s industrial overcapacity has been a concern for many countries, as it can result in an oversupply of goods that drive down prices and potentially harm other nations’ industries.
Yellen noted that other countries have been conducting anti-subsidy and anti-dumping investigations into Chinese manufacturing practices.
While meeting with high-ranking Chinese officials, Yellen discussed economic tools used for national security.
She stressed the importance of ongoing communication to ensure there are no surprises between the two countries.
The U.S. and China agreed to engage in regular discussions on promoting balanced economic growth both domestically and globally.
They also discussed financial stability and anti-money laundering measures.
However, China has expressed concerns about U.S. trade restrictions, emphasizing that it adheres to market economy principles.
Yellen acknowledged that addressing overcapacity and stimulating domestic demand are long-term challenges that China has been working on for over a decade.
She affirmed the importance of ongoing dialogue and understanding the differences between the two nations to make progress.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Yellen said her conversations with Chinese officials during the trip discussed plans Beijing had for its economy, but she did not elaborate.”
“China has also sought to bolster its technological capabilities in the face of growing U.S. restrictions on how Chinese companies can access that tech.”
Negative
“China’s industrial overcapacity — or excess production of goods that undercuts global competitors on price — has increasingly become a point of international concern.”
“Instead of global trade, Beijing’s oversupply concerns tend to focus on the deflationary aspects, detriments to banking sector health and local governments’ fiscal stress”