US Treasury Secretary Yellen meets foreign business leaders in China ahead of trade talks

Guangzhou, China — US Treasury Secretary Janet Yellen kicked off a trip to China on Friday with a morning meeting to listen to concerns from US, European and Japanese business representatives in the world’s second-largest economy, ahead of what are likely to be tough talks on trade and other issues. with senior Chinese government officials.

Yellen, the first Cabinet-level official to visit China since President Joe Biden met Chinese leader Xi Jinping last November, shook hands with the heads of the U.S. and European Chambers of Commerce in China after arriving for the meeting in the industrial south center of Guangzhou. .

She has cabled that her five-day trip to China will focus on what the US considers unfair Chinese trade practices, a concern shared by many European countries.

Eswar Prasad, a business professor at Cornell University, expects Yellen to push Beijing to boost domestic consumption and ensure fair competition in new technology sectors, especially green energy and electric vehicles, along with adequate market access for US companies.

“Concerns about China trying to export its excess capacity while giving a major boost to these sectors will be a top priority for the US delegation,” he said.

China has pushed back against overcapacity concerns raised by both the US and Europe.

Foreign Ministry spokesman Wang Wenbin said earlier this week that the growth of China’s electric and solar energy exports is conducive to global green development and is the result of the international division of labor and market demand.

He accused the US of hindering free trade by restricting technology exports to China.

“As for who engages in non-market manipulation, it is a fact for all to see,” he said. “The US has not stopped taking measures to curb Chinese trade and technology. This is not ‘reducing risk’, but creating risk.”