US emphasis on China’s need for shift in policy on industry and economy, says Yellen

United States Treasury Secretary Janet Yellen on Monday (Apr 8) said that the discussions that will take place between Washington and Beijing in the near future will primarily focus on China's need for a shift in policy around industry and the economy.

“We intend to underscore the need for a shift in policy during these talks — building on the over two hours I spent on this topic with the vice premier last week,” she told a news conference as she wrapped up four days of her visit to China.

Yellen said that discussions regarding Beijing's plans for its economy were also held during talks with the Chinese officials.

She met with top Chinese officials including Vice Premier He Lifeng in Guangzhou and Chinese Premier Li Qiang in Beijing during her visit.

“Over the past year, we have put our bilateral relationship on more stable footing,” Yellen said.

“This has not meant ignoring our differences or avoiding tough conversations,” she said. “It has meant understanding that we can only make progress if we directly and openly communicate with one another.”

As per a readout from China, Li stated that Beijing hoped the United States would comply with the market economy norms and would also refrain from politicizing trade disputes.

He then said that the developments related to China's latest energy sector would also significantly contribute to global carbon neutrality efforts.

The United States and China agreed to “intensive exchanges on balanced growth in the domestic and global economies,” as per a Treasury readout released after Yellen’s meetings in Guangzhou with He.

Both the countries also decided to start "Joint Treasury-PBOC Cooperation and Exchange on Anti-Money Laundering" in order to expand "cooperation against illicit finance and financial crime," stated the readout.

Also read: Biden set to issue warning to China over its increasing belligerence in South China Sea

Biden would not allow repeat of 'China shock', says Yellen

Yellen issued a warning to China on Monday stating that the United States will not allow Chinese imports to destroy the nascent sectors in the country.

She told the news conference that the US President would not allow a repeat of the "China shock" that took place in the early 2000s, when cheaper Chinese imports flooded the US markets and obliterated over 2 million American manufacturing jobs.

"When the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question. And we've seen this story before. Over a decade ago, massive PRC (People's Republic of China) government support led to below-cost Chinese steel that flooded the global market and decimated industries across the world and in the United States. I've made clear that President Biden and I will not accept that reality again," she said during the news conference.

(With inputs from agencies)