US-China Economic Talks: Yellen and He Reach Agreement

US Treasury Secretary Janet Yellen and China's Vice Premier He Lifeng have reached an agreement to initiate exchanges focused on achieving balanced economic growth. This move is aimed at addressing US concerns regarding China's excess manufacturing capacity, particularly in sectors such as electric vehicles and clean energy technology.

During two days of economic talks in Guangzhou, Yellen and He also agreed to establish a forum to collaborate on anti-money laundering efforts within their financial systems. Yellen emphasized the importance of discussing macroeconomic imbalances, including the issue of overcapacity, to advocate for fair competition for American workers and businesses.

Despite productive discussions, Chinese state media criticized US claims of excess capacity as a pretext for protectionist policies. Yellen highlighted the need for China to address concerns about flooding global markets with exports that hinder the competitiveness of American firms.

The newly established forum will provide a structured platform to address these complex issues, although resolving them will require time. Yellen acknowledged China's efforts to address economic challenges internally, expressing confidence in the constructive dialogue between the two nations.

Both parties have agreed to continue discussions on balanced growth and financial stability, with Beijing raising concerns about US economic and trade restrictions on China. Yellen also cautioned Chinese firms against supporting Russia's war efforts, emphasizing potential consequences for such actions.

In conclusion, the talks between the US and China have set the stage for ongoing dialogue on critical economic issues, signaling a commitment to addressing mutual concerns and fostering a more balanced global economic landscape.