U.S. Treasury Secretary Janet Yellen commenced her official meetings in China by discussing overcapacity concerns and promoting market-oriented reforms. Yellen arrived in Guangzhou late on Thursday and is scheduled to travel to Beijing on Saturday, where she will stay until Tuesday. It is her second trip to China as Treasury secretary.
Before her scheduled meeting with Vice Premier He Lifeng, Yellen met with Wang Weizhong, governor of Guangdong province, of which Guangzhou is the capital. In prepared remarks for her meeting with Wang, Yellen emphasized the importance of a healthy economic relationship between the two countries and the need for a level playing field for American workers and firms. She emphasized the issue of China’s industrial overcapacity, a concern shared by the United States and other countries.
Yellen also met with representatives from American, European, and Japanese businesses and spoke at an American Chamber of Commerce in China event in Guangzhou. She highlighted the intensification of overcapacity in new sectors and the impact it has on both Chinese and foreign firms, emphasizing that addressing overcapacity and pursuing market-based reforms is in China’s interest.
The southern Chinese city of Guangzhou, located in Guangdong province, is a major hub for technology and manufacturing. China is the world’s second-largest economy behind the U.S., and despite recent economic challenges, it is expected to continue contributing a significant portion of global economic growth.
Yellen’s trip to China comes amidst an increasingly tense relationship between the U.S. and China. Both governments have attempted to increase communication, with President Joe Biden and Chinese President Xi Jinping speaking by phone for the first time since their in-person meeting in November. Wang Shouwen, a vice commerce minister and head of international trade negotiations, recently visited the U.S. for the first vice-ministerial meeting of a bilateral commerce and trade working group.
The U.S. and China have announced plans for regular meetings of working groups, indicating a desire to improve communication and address areas of disagreement. U.S. Secretary of State Antony Blinken is also expected to make a trip to China later this year, further demonstrating a commitment to engagement between the two countries.
