Source: Bloomberg
Author: Christopher Condon
The US Treasury Secretary Jennite Yellen sincerely urged China's supreme leadership to fundamentally rethink economic growth strategies.This time, she was close to the end of the visit to China. During the visit, she promoted the strengthening of bilateral relations on the one hand, and on the other hand, she also proposed sharp criticism.
Yelun said at a press conference held in Beijing on Monday that China's economic imbalance and huge government subsidies to specific industries will "bring major risks to workers and companies in the world in the world."
During the four -day visit, Yellen repeatedly defined China's strategic strategy of boosting China's huge manufacturing capacity as a universal concern worldwide, urging Chinese leaders to focus on improving domestic demand.Chinese President Xi Jinping will improve the advancement of advanced manufacturing as a deep real estate crisis and achieve the top 5%of the economic growth goals this year.
This is the second trip to China within nine months of Yellen, or it may be her last visit to China as a US Treasury Secretary.At the same time, the two major economies in the world are working hard to stabilize and turbulent, and solve profound differences in policy formulation.As Beijing put resources into advanced manufacturing to resist the crisis of the real estate industry, the United States has criticized China to sell a large number of low -cost products in the world.
Beijing refuted, saying that Chinese companies have been punished by developed countries that are unable to compete in prices, and have filed a lawsuit against the World Trade Organization for subsidies for subsidies.Although Prime Minister Li Qiang suggested on Sunday that Yellen not to political and trade issues, the atmosphere of the meeting between the two parties is still friendly.
"Because the Chinese economy is still fragile, the United States has a chip," Christopher Beddor, deputy director of Chinese research at GaveKal Dragonomics, said that when the US presidential election constituted a new risk in November, friendship was friendly to Beijing's interests."So, even if Yellen published severe criticism, they did not refuse her," Beddor said.
In addition to meeting with high -level officials such as the central bank Pan Gongsheng, Yellen also met with economists and US corporate executives during the trip.Her sword refers to China's export policy, saying that American companies have been treated "unfair" in China, and said that if Chinese companies support Russia's war in Ukraine, they will face "serious consequences."
"China is too big to achieve rapid growth through exports," Yellen said at an event hosted by the American Chamber of Commerce in China.She added that the current products produced by Chinese factories have exceeded the global market tolerance.
On the other hand, Yellen also showed a friendly attitude, including last Friday with Deputy Prime Minister He Lifeng to visit the Pearl River in Guangzhou, highlighting the delicate balance she needed by this trip.According to the two people present, during the tour, Yellen and He Lifeng exchanged gifts.He Lifeng was presented to Yellen a decorative plate, and a Chinese artist repeated Yellen's official portrait on it; Yellen presented a Washington monument with an artist signed by the artist.
The standpoint of Yellen's trip was in sharp contrast to her views two or thirty years ago. At that time, like most people, she supported China to join the World Trade Organization, and transported low -cost commodities to China to the world.Get rid of poverty and opened the door.The decision makers underestimate the destructive impact of China's manufacturing glory on the industries of the United States and other economies. Many people regard this as the key to political populism and former President Donald Trump's rise.
As China tries to reach the real estate crisis by trying to increase investment to the manufacturing industry, Yellen, as the Minister of Finance, now seems to intentionally prevent historical reproduction.
Yellen said on Monday that the United States lost 2 million positions in the year after China joined the WTO."This really caused industrial production in many regions to be emptied," she said."I just want to say that for the United States, for President Biden, it is unacceptable to allow such things to happen again."
According to a senior US Treasury official who participated in the talks, in the meeting with He Lifeng, Yellen explained in detail how she believed in some industries in the United States to be threatened.The official said that after China criticized the United States to subsidize the domestic semiconductor and clean energy industry, Yellen responded that the US policy was more targeted and focused on domestic.
During this trip, China is recommended to strengthen retirement protection and enhance the burden of education, thereby promoting domestic expenditure and lowering high -owned family savings rates.Both tasks may take a long time to complete.
Yellen's public criticism is not a positive response.Xinhua News Agency commented on Friday to refute Yellen's "overcapacity in China" and terrorist remarks, saying that they were creating an excuse for the US trade protectionist policy.
Xinhua News Agency reported that at the conference, China had serious concerns about the US side's economic and trade restrictions on China.U.S. President Biden has implemented a series of restrictions on the grounds of national security to restrict China's advanced semiconductor.
Yellen's tough statement did not hinder China and the United States' consent to promote a new round of talks, focusing on the "balanced growth of domestic and global economy" mentioned by Yellen and He Lifeng.
However, if there is fundamental differences in the prospects of economic policy, then such talks may be difficult to achieve substantial results.
Wang Wen, Executive Dean of Renmin University of China Chongyang Financial Research Institute, said that Yellen's accusations on "overcapacity" would not help solve the trade problem between China and the United States.On the contrary, it will only make China aware that the United States lacks sincerity.
