The Treasury Secretary of America, Janet Yellen, ended his visit to China by discussing how the surplus industrial capacity and imports can greatly impact the economy. With this issue in mind, Yellen claimed that people would not stand by and let another destruction of new branches of industry happen and witness job cuts – an example is the «China shock» that resulted in the dismantling of 2 million American manufacturing jobs. It is worth noting, however, that Yellen was cautious in terms of the direct trade actions she was willing to threaten, and her concerns were levelled against excessive Chinese factory capacity, which has skyrocketed to disproportionate levels that leave firms in the US and other countries with little competitiveness.
She did not merely demand the invention of solutions, but instead called for sufficient time required to develop an agreement of an exchange forum to deal with the overcapacity problem. In this regard, Senator Warren brought up the example of the steel industry’s impact on the United States in the past, declaring that there is no way she and President Biden could allow such a scenario to repeat again. Through her Chinese talks to further American pursuits, it becomes very clear that the two countries’ shared concerns are unbalanced industrial capacity.
The Fed Chair not only highlighted the shift in Chinese economic growth but also didn’t deny the application of tariffs. The U.S. and China continued to expand teamwork in the area of financial stability by simulating crises.
The Chinese government showed a confident will to address the problem of too much industrial capacity. In contrast, Chinese officials said that the complaints about their overcapacity misunderstand innovative capacities and overestimate the role of a state. ‘s attention. On the matter of production capacity, a global approach in the case of market orientation is expected of Chinese Commerce Minister Wang Wentao.
