U.S. Treasury Secretary Janet Yellen shakes hands with Chinese Vice Premier He Lifeng before a dinner in the southern Chinese city of Guangzhou on April 5, 2024.
Pedro Pardo | AFP | Getty Images
Chinese state media said that U.S. Treasury Secretary Yellen’s comments on China’s overcapacity were an attempt to revive the “China threat” rhetoric, which seemed to create an excuse for the United States to adopt more protectionist policies.
The state news agency Xinhua said in an editorial late on Friday that such comments were aimed at undermining China’s domestic growth and international cooperation and that Washington should focus on fostering innovation and competitiveness within its own borders rather than resorting to fear-mongering.
Yellen told U.S. businesspeople in Guangzhou, China’s southern export hub, on Friday that there were growing concerns about the impact of China’s overcapacity on the global economy, making the issue the focus of her four-day meeting with Chinese officials.
Yellen pointed out that China’s overproduction of electric vehicles, solar panels, semiconductors and other products amid declining domestic market demand has flooded the global market, which is bad for China and is hurting producers in other countries.
Xinhua News Agency said, “Talking about ‘China’s overcapacity’ in the clean energy sector also implies creating an excuse to introduce more protectionist policies to protect American companies.”
“After all, the world now knows that Washington will not hesitate to bare its protectionist teeth under the guise of national security in areas where its hegemony is challenged.”
Yellen met with Vice Premier Ho Lifeng and Guangdong Governor Wang Weizhong in Guangzhou after arriving in China late Thursday.
She will travel to Beijing on Saturday and will meet with officials including Prime Minister Li Qiang and People’s Bank of China Governor Pan Gongsheng on Monday, according to a Ministry of Finance news briefing.
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