Yellen Kicks Off China Tour with Cautionary Note on Excessive Factory Capacity

During her current visit to China, Treasury Secretary Janet Yellen initiated discussions on enhancing economic ties while cautioning against Chinese manufacturing overcapacity, which she believes poses risks to the global economy. Yellen pledged to highlight the advantages of a “robust economic partnership” during her four-day itinerary. In a meeting with Wang Weizhong, the governor of Guangdong province, a key industrial hub, she stressed the importance of a fair playing field for American entities and emphasized the necessity of open dialogue, particularly on contentious issues between the two nations. Yellen specifically pointed to concerns surrounding China’s industrial surplus capacity, highlighting the potential for worldwide economic repercussions.