By The Financial District
Apr 111 min
US Treasury Secretary Janet Yellen warned China that Washington will not accept new industries being decimated by Chinese imports, as she wrapped up four days of meetings to press her case for Beijing to rein in excess industrial capacity, David Lawder and Marius Zaharia reported for Reuters.
Yellen told a press conference that U.S. President Joe Biden would not allow a repeat of the "China shock" of the early 2000s when a flood of Chinese imports destroyed about 2 million American manufacturing jobs. I Photo: Grant Ellis, World Bank Group Flickr
Yellen told a press conference that U.S. President Joe Biden would not allow a repeat of the "China shock" of the early 2000s when a flood of Chinese imports destroyed about 2 million American manufacturing jobs.
She did not, however, threaten new tariffs or other trade actions should Beijing continue its massive state support for electric vehicles (EVs), batteries, solar panels, and other green energy goods.
Yellen used her second trip to China in nine months to complain that Beijing's overinvestment has built factory capacity far exceeding domestic demand, while fast-growing exports of these products threaten companies in the US and other countries.
She said a newly created exchange forum to discuss the excess capacity issue would need time to reach solutions.