2024-04-19 02:51:59
On April 6, 2024, US Treasury Secretary Yellen and Chinese Vice Premier He Lifeng arrived at the Zhudao Hotel in Guangzhou for a meeting. (Pedro Pardo/AFP)
[TheEpochTimes19avril2024]The goal of U.S. Treasury Secretary Yellen’s visit to China is to address China’s overcapacity issues in electric vehicles, solar panels and other clean energy products. These issues pose a serious threat to manufacturers in the United States. States and other countries under threat. The US Deputy Treasury Secretary who visited China with Yellen provided the inside story of their talks with Chinese Premier Li Qiang on the issue of China’s overcapacity.
US Deputy Treasury Secretary: Li Qiang willing to discuss China’s overcapacity problem
US Treasury Secretary Janet Yellen arrived in Guangzhou, China on the afternoon of April 4, beginning a six-day visit to China. Yellen’s visit to China included Jay Shambaugh, the US undersecretary of the Treasury for International Affairs. They held two days of bilateral talks with Chinese Vice Premier He Lifeng in Guangzhou, then traveled to Beijing to meet Chinese Premier Li Qiang, and then met with Chinese Finance Minister Lan Fo’an. Yellen also met with Liu He, former vice premier of the Communist Party of China, and Pan Gongsheng, governor of the Central Bank of China.
Recently, US media outlet The Wire China reported that in an interview with Shambo hosted by Bob Davis, Shambo outlined discussions between Yellen and Chinese Communist Party leaders, including US efforts to get Beijing to address the overcapacity and economic imbalances. , how the two countries will respond to future financial crises and whether China is deliberately devaluing its yuan.
Before joining the Treasury Department in early 2023, Chambeau was an international economist at George Washington University, focusing on currencies, exchange rates and macroeconomics. He served as chief economist for the White House Council of Economic Advisers.
In February of this year, a five-member delegation led by Shambaugh held two days of discussions with Chinese Communist Party Finance Ministry officials on the U.S.-China economic working group in Beijing. The meeting between finance ministry officials from the two countries was seen as paving the way for Yellen’s visit to China in April.
Chambaugh said Yellen’s visit to China would allow her to have in-depth discussions on substantive issues and conduct substantive dialogue with the Chinese side. At the Guangzhou conference, they were able to communicate more, including one-on-one and even in small groups.
He said he often communicates with Liao Min, vice minister of finance of the Communist Party of China, but there are many differences between the two sides in the economic field.
On whether China’s overcapacity in electric vehicles, solar panels and clean technology products is a central issue discussed between the United States and China, Shangbo said it is one of the important aspects. During the meeting with Li Qiang, they discussed this topic for more than two hours. The United States raised the issue of China’s overcapacity with Li Qiang, and Li Qiang was willing to discuss it and talked a lot about it.
Chambeau said it was a complex issue involving macroeconomic imbalances, including very high savings rates. If investment is high and concentrated in manufacturing areas, then it is possible that significant capacity will begin to build up in these areas.
Shambaugh said China was challenging market share constraints elsewhere. As China accounts for 30% of the global manufacturing industry and is growing very quickly, it is starting to crowd out the market share of other countries.
Shangbo believes that the United States is ensuring that China understands its concerns and what they are worried about. Ensuring communication at the highest level of leaders of both parties is a very important element – including the Prime Minister and the Deputy Prime Minister responsible for economic policy. Because in the Chinese Communist Party system, it is very important to get permission from the top.
The CCP did not refute the US remarks during the negotiations, but it still spoke harshly in its external propaganda.
Before her visit to China, Yellen set the tone on the problem of China’s “overcapacity.” At a press conference on April 8, Yellen explained that there is strong support for sectors such as new energy vehicles and that production capacity has increased significantly. However, China’s domestic demand is weak, so there is overinvestment in the industry and raw material prices are falling. artificially depressed. When these products are exported to Europe and the United States, the survival of local companies will be threatened, just as Chinese steel swept the global market more than a decade ago. Additionally, “China’s economy is too large today and actions taken by Chinese entities can alter international prices and challenge the survival of businesses in the United States and other countries.”
Asked about the Chinese Communist Party’s criticism of the U.S. economy, Shangbo said that during discussions on balanced growth, China had not voiced much criticism. They sometimes talk about the huge American budget deficit.
However, during Yellen’s visit to China, the CCP’s external propaganda focused on refuting American views, claiming that the United States was extolling China’s overcapacity theory.
Wang Wentao, Minister of Commerce of the Communist Party of China, started his visit to France on April 7 and held a round table of Chinese electric vehicle companies in Europe in Paris. Wang Wentao said that Chinese electric vehicle companies rely on continuous technological innovation, a complete production and supply chain system and sufficient market competition to develop rapidly, rather than relying on subsidies to obtain competitive advantages. and Europe are baseless.
Xinhuanet, the mouthpiece of the Chinese Communist Party, published an article on April 11: “The absurd logic of China’s overcapacity theory begins.”
In fact, China has recognized the problem of overcapacity in many places.
Shangbo revealed that in a report last December, China raised the problem of overcapacity in certain sectors. In March this year, they also discussed the risk of overcapacity in certain sectors. This is not a new problem.
“What we need to do is prevent this situation in advance,” Shangbo said. “This time, you (the Chinese Communist Party) must put the problem in front of you. You can’t just sit back and watch the problem hit the world.” , then say, “Oh, we can take four years to solve this problem.” »
Editor-in-chief: Fang Xiao#
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