Chinese-American agreement to hold talks on balanced growth

The United States and China have agreed to hold “intensive discussions on balanced growth,” according to what the US Treasury Department announced in a statement issued on Saturday at the conclusion of two days of talks held by Secretary Janet Yellen with Chinese Vice Premier He Lifeng in Guangzhou.

After the talks, Yellen said that she agreed with the Chinese Deputy Prime Minister to launch talks between the two countries on balanced growth in the local and global economies, adding that this partly aims to address American concerns about China’s excess manufacturing capacity.

The scheduled discussions represent a new step in joint efforts to stabilize relations between the two largest economies in the world, since the summit of Presidents Joe Biden and Xi Jinping last November.

Yellen said in a separate statement, “These discussions will facilitate a discussion about macroeconomic imbalances, and their connection to excess capacity, and I intend to seize this opportunity to call for fair conditions for American workers and companies.”

Yellen’s visit to China, the second in a year, comes at a time when disagreements are emerging between Washington and Beijing over many issues from technology and trade to human rights, including the autonomous island of Taiwan and TikTok.

Yellen also warned of “severe consequences” if it turns out that Chinese companies are helping Russia in its war against Ukraine, at a time when Beijing refrained from condemning the Russian war against Ukraine.

The Treasury Department said in the statement that Yellen “stressed that companies, including companies in China, should not provide support for Russia’s war on Ukraine, including support for the Russian defense industry sector,” warning of “severe consequences if they do so.”

The top priority of Yellen’s four-day visit to China is to try to persuade officials there to curb excess production capacity of electric cars, solar panels and other clean energy technology, as it threatens competing companies in the United States and other countries.

But Chinese official media rejected her arguments about excess production capacity, describing it as an “excuse” for protectionist US policies.

A press advisor to the Treasury Department said that Yellen will travel later on Saturday to Beijing, where she will hold meetings with officials including Prime Minister Li Qiang, Finance Minister Lan Fuang and Governor of the People’s Bank of China Pan Gongsheng until Monday.