The recent comments made by U.S. Treasury Secretary Janet Yellen regarding China’s excess manufacturing capacity have sparked a heated response from Chinese state media. These comments have been labeled as an attempt to revive the “China threat” narrative and set the stage for more protectionist policies by the U.S.
Undermining China’s Growth and Cooperation
According to a late-night editorial by state news agency Xinhua, Yellen’s remarks are perceived as a direct attack on China’s domestic growth and international cooperation efforts. The editorial suggests that instead of resorting to fear-mongering tactics, the U.S. should focus on enhancing innovation and competitiveness within its own borders.
Concerns Raised by Yellen
During her visit to China’s export hub of Guangzhou, Yellen expressed concerns about the global economic implications of China’s overproduction in various sectors, including electric vehicles, solar panels, and semiconductors. She highlighted the adverse effects of flooding global markets with these goods amidst a decline in domestic demand.
Xinhua’s editorial accuses the U.S. of using the narrative of ‘Chinese overcapacity’ in clean energy as a guise for implementing protectionist policies that would favor American companies. The editorial warns that Washington has a history of resorting to protectionism in the name of national security when faced with competition from other countries.
Following her discussions with Chinese officials in Guangzhou, Yellen is scheduled to continue her visit in Beijing. She is expected to meet with high-ranking officials, including Premier Li Qiang and People’s Bank of China Governor Pan Gongsheng, to further address economic matters between the two countries.
The implications of U.S. Treasury Secretary Janet Yellen’s comments on China go beyond mere economic discourse. They have elicited strong reactions from Chinese state media and stoked concerns about the future of trade relations between the two global powers. It remains to be seen how these statements will impact diplomatic efforts and policy decisions moving forward.