U.S. Treasury Secretary Janet Yellen said on Tuesday that China's massive investments in advanced manufacturing of clean energy goods have resulted in an unfair playing field that puts American workers and businesses at risk, and it needs to be mitigated.
Yellen told reporters on the sidelines of the International Monetary Fund and World Bank spring meetings that overproduction of electric vehicles, batteries, solar panels and other goods could put companies in the U.S. and other countries out of business while Chinese firms continue to receive support.
"So this isn't a level playing field. And from a supply chain standpoint, I think it creates risks that we're clearly seeking to mitigate and it's also unfair to our workers and firms," Yellen said as she prepared to start a new round of meetings with Chinese officials.
Yellen, who visited China earlier this month, said the ongoing dialogue with Chinese officials had already led to progress in areas of common interest, including combating money laundering and addressing climate change,
But U.S. officials had also engaged in important discussions with senior Chinese officials regarding China's industrial policy practices and the negative spillovers that overcapacity could create for the global economy.
China's Vice Minister of Finance Liao Min told Yellen that Beijing attached "great importance" to the Chinese delegation's visit to Washington.
He read a statement from former Vice Premier He Lifeng, in which He thanked Yellen for "programmatic, in-depth and constructive" talks in China and said he hoped the two sides would continue to deepen their exchanges.
