{"id":18872,"date":"2024-04-05T07:27:15","date_gmt":"2024-04-05T07:27:15","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/05\/janet-yellen-blasts-coercive-china-moves-on-us-firms-times-of-india\/"},"modified":"2024-04-05T07:27:15","modified_gmt":"2024-04-05T07:27:15","slug":"janet-yellen-blasts-coercive-china-moves-on-us-firms-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/05\/janet-yellen-blasts-coercive-china-moves-on-us-firms-times-of-india\/","title":{"rendered":"Janet Yellen blasts \u2018coercive\u2019 China moves on US firms – Times of India"},"content":{"rendered":"
\"Janet<\/div>\n
US treasury secretary Janet Yellen chided China\u2019s government for \u201cunfair\u201d treatment of American and other foreign companies and called on Beijing to return to the pro-market reforms of the past, at the start of her four-day visit to the country.
China has pursued \u201cunfair economic practices, including imposing barriers to access for foreign firms and taking coercive actions against American companies,\u201d Yellen said in prepared remarks Friday in the southern city of Guangzhou.\u201cI intend to raise these issues in meetings this week.\u201d
Ties between the world\u2019s two biggest economies have shown signs of improving since Presidents Joe Biden and Xi Jinping met in November. But deep differences remain, and they\u2019ve been exacerbated by China\u2019s drive to boost manufacturing investment, an effort to offset the country\u2019s real estate slump. The US and allies have cried foul over unfair competition, while China accuses them of trying to protect their own less-efficient industries.
For Xi\u2019s team, the Yellen visit also marks one of the last chances to shape American policy before November\u2019s US election, in which both candidates are vying to look tough on China. Former President Donald Trump has already threatened a 60% tariff on Chinese goods if elected.
\u2018Market approach\u2019<\/span>
Yellen began her trip in Guangzhou, a key trading hub in the southern province of Guangdong, a manufacturing and export powerhouse. She highlighted former leader Deng Xiaoping\u2019s 1992 visit to the city as an important milestone in China\u2019s transformation toward a market economy \u2014 and urged a renewed focus on reforms from China\u2019s current leadership.
In remarks at an event hosted by the American Chamber of Commerce in China, Yellen cited a recent survey by the organization that found one third of American firms in China report unfair treatment compared to local competitors.
\u201cI strongly believe that this doesn\u2019t only hurt these American firms: ending these unfair practices would benefit China by improving the business climate here,\u201d Yellen said. She added that many US businesses are concerned about \u201cthe impacts of China\u2019s shift away from a market approach.\u201d
President Xi Jinping in recent years has overseen a strengthening of the role of the Communist Party in China\u2019s economy, and championed state-led efforts to strengthen new industries like electric vehicles and solar technology.
Yellen repeatedly flagged her concerns about industrial overcapacity in China fueled by government subsidies. The US has been keen to frame that as a concern for other countries too. When the Treasury chief met with foreign business leaders earlier on Friday to hear their take, executives from Europe and Japan were among those invited.
\u201cDirect and indirect government support is currently leading to production capacity that significantly exceeds China\u2019s domestic demand, as well as what the global market can bear,\u201d Yellen said at the chamber\u2019s event. \u201cIf policies are oriented only at generating supply and not also at generating demand, global spillovers will result.\u201d
\u2018Classic protectionism\u2019<\/span>
The topic has emerged as Yellen\u2019s No. 1 message for her swing through the country, which will also see her travel to the capital of Beijing. She raised the issue earlier Friday at her first event in China, a meeting with Guangdong Governor Wang Weizhong.
She\u2019ll likely encounter plenty of pushback during the visit, her second in nine months. China argues that its companies are being unfairly excluded by developed nations that can\u2019t compete on price.
Last month Beijing accused the US of engaging in \u201cclassic protectionism\u201d by seeking to erect barriers to Chinese EVs, and filed a case with the World Trade Organization over American subsidies for the industry.
Later on Friday, Yellen is scheduled to begin a series of meetings with Vice Premier He Lifeng, China\u2019s economic policy czar. The pair will convene a bilateral meeting with staff, followed by a dinner and an evening boat excursion on the Pearl River.
The two will hold another meeting and a working lunch Saturday before Yellen travels on to Beijing.<\/div>\n