US won't let new economy sectors be destroyed by Chinese imports - Ministry of Finance
US Treasury Secretary Janet Yellen (getty images)
The United States will not tolerate the potential destruction of new sectors of the American economy by subsidized Chinese imports, such as the metallurgical sector in the U.S. a decade ago, according to the US Treasury Secretary Janet Yellen.
Following four days of talks with Chinese officials, Yellen said at a press conference that discussions were progressing in America's interests.
She expressed concerns about weak domestic demand in China and excessive investments in sectors such as electric vehicles, batteries, solar panels, and related products, fueled by "widespread state support."
"We've seen this story before. Over a decade ago, massive PRC (People's Republic of China) government support led to below-cost Chinese steel that flooded the global market and decimated industries across the world and in the United States," said Yellen.
"I've made it clear that President Biden and I will not accept that reality again," she added.
The minister noted that when the global market is flooded with artificially cheap Chinese products, "the viability of American and other foreign firms is put into question."
China's support of Russian aggression against Ukraine
During her visit to China, Yellen also raised the issue of Chinese support for Russian aggression against Ukraine. She said that Chinese banks and exporters should not bolster Russia's military potential, warning that "they will face significant consequences if they do."
On April 8, Russian Foreign Minister Sergei Lavrov arrived in China for talks with his Chinese counterpart Wang Yi.
The Chinese Foreign Ministry said that Beijing did not seek to profit from the war in Ukraine.
