U.S. treasury secretary urges China to address global economic concerns

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U.S. Treasury Secretary Janet Yellen recently highlighted growing worries about China’s excessive manufacturing capacity, emphasizing the issue during economic discussions with Chinese officials.

Yellen expressed concerns that China’s large-scale manufacturing could harm global economies, particularly through overproduction affecting various sectors like electric vehicles, solar panels, and semiconductors. She emphasized the importance of China reducing its excess industrial capacity to alleviate pressure on other economies.

Yellen’s remarks were made during meetings in Guangzhou, where she engaged with Chinese Vice Premier He Lifeng and Guangdong Province Governor Wang Weizhong. She stressed that while overcapacity has been an ongoing issue, it has intensified, posing risks to new sectors. Yellen highlighted the need for China to move away from state-driven investment towards market-oriented reforms, which historically fueled its growth.

Source: Reuters

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