Editorial | Tough conversations key to bridging gap between China, US
- Despite lack of progress on electric vehicle and solar panel ‘overcapacity’, trip by US Treasury Secretary Janet Yellen helps keep superpower communications open
China and the United States keep talking, and that is half the battle in rebuilding trust and understanding. US Treasury Secretary Janet Yellen’s visit to China, following last November’s summit between President Xi Jinping and his US counterpart Joe Biden and their recent phone call, is a sign of more stability in bilateral relations.
Yellen and her hosts were never going to see eye to eye on Chinese “overcapacity”. But at least the two sides were willing to engage in open and frank talks.
With US elections coming up, this is important. It is to be hoped they can continue high-level dialogue on financial and trade relations regardless of any attempts to politicise them.
Media focus on overcapacity during Yellen’s visit was understandable. A call for a policy change on the issue topped her agenda as a senior member of Biden’s cabinet.
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US Treasury chief Janet Yellen leaves China after ‘difficult conversations’, overcapacity gripes
The Americans share European concerns that Chinese industrial policy will result in “artificially cheap” products such as electric vehicles (EVs) and solar panels flooding global markets. Automobiles remain a key industry and job creator in the West.
There are concerns Chinese EVs will eat into market share and hurt Western economies. The West wants China to boost domestic demand to absorb overcapacity.
