Yellen addressed the media on Wednesday during her flight to China, marking her second visit in less than a year. She hinted at discussions about potential trade measures to counter the excessive production capabilities driven by China in the clean energy sector. Yellen expressed an openness to exploring various strategies to safeguard these industries.
Her visit reveals China’s aggressive investment in burgeoning sectors like electric vehicles, batteries, and renewable energy. These initiatives are part of China’s effort to rejuvenate its decelerating economy by tapping into new growth avenues.
Trade imbalances and China’s market practices were key points in a recent conversation between President Joe Biden and Chinese President Xi Jinping. Biden highlighted concerns over China’s trade policies and the economic challenges it faces in global markets.
President Xi Jinping (Credits: CNN)
Yellen’s journey to China aims to address the global implications of China’s industrial expansion, particularly the risks of overproduction in critical green technology sectors.
Additionally, Yellen seeks to foster greater collaboration with Beijing on pressing issues such as combating illegal financial activities and climate change. She shared these intentions on social media ahead of her meetings.
Treasury Secretary Yellen (Credits: Reuters)
During her visit, Yellen will spend two days in Guangzhou, a major commercial and manufacturing center in southern China. She will then proceed to Beijing for another two days of discussions.
This visit underscores the complexity of the U.S.-China economic relationship, balancing the need for competition with the pursuit of cooperation on shared global challenges.
