Yellen calls for level playing field for US workers and companies during China visit

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GUANGZHOU, China—US Treasury Secretary Janet Yellen called on China on Friday to address manufacturing overcapacity that she said could cause global economic dislocation and to create a level-playing field for American companies and workers.

U.S. Treasury Secretary Janet Yellen, left, shakes hands with Wang Weizhong, deputy party secretary and governor of Guangdong prior to a meeting at the Baiyun International Conference Center in southern China’s Guangdong province, Friday, April 5, 2024. Yellen has arrived in China for five days of meetings in a country that’s determined to avoid open conflict with the United States.

Yellen, the first Cabinet-level official to visit China since President Joe Biden met Chinese leader Xi Jinping last November, earlier told the governor of Guangdong province that it’s important for the US and China to have open and direct communication on areas of disagreement. “I’ve heard from many American business executives that operating in China can be challenging,” Yellen said at an event hosted by the American Chamber of Commerce in China on Friday afternoon.

Earlier in the day, she also met with American, European and Japanese business representatives to hear their concerns. The massive scale of production has driven down costs and ignited price wars for green technologies, a boon for consumers and efforts to reduce global dependence on fossil fuels. But Western governments fear that that capacity will flood their markets with low-priced exports, threatening American and European jobs.

“This is not anti-China policy,” she said. “It’s an effort for us to mitigate the risks from the inevitable global economic dislocation that will result if China doesn’t adjust its policies.”

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