Sun, May 19, 2024

USD: Yellen: Global Concerns Rise on China’s Excess Capacity

The US Treasury Secretary Janet Yellen met with China Governor on Friday through Monday. Janet Yellen said China is doing overcapacity production it is the biggest threat to other western nations. Excess supply in the Domestic market makes exports to other countries, it is not issue, but over production of Semiconductors, Solar panels and advanced technologies is the threat to competitors in the Global world. We have to give business for others not fully occupying space in the Full sectors. China said US put tariffs on China imports in US. One Third of US Companies treated as low when compared to local china companies in China is claimed by US Companies to US Government. This is tit for Tat scenario going between US and China on Business models.

USD Index Market price is moving in box pattern and market has rebounded from the support area of the pattern

USD Index Market price is moving in box pattern and market has rebounded from the support area of the pattern

This meeting did not change whole business model between US and China, they are just saying the concerns about china and welfare about Global countries due to China excess production.

U.S. Treasury Secretary Janet Yellen addressed mounting concerns on Friday regarding the global economic implications stemming from China’s excessive manufacturing capabilities. This issue took precedence during four days of economic deliberations with Chinese officials.

Yellen emphasized that China’s size renders it unsustainable to pursue rapid growth solely through exports. She stressed the imperative for China to alleviate its surplus industrial capacity, which is exerting pressure on other economies. Her remarks, delivered to an audience of approximately 40 representatives of the American Chamber of Commerce in Guangzhou, underscored the intensification of existing overcapacity problems and the emergence of risks in new sectors.

During her visit to Guangzhou, where she engaged with Vice Premier He Lifeng and Guangdong Province Governor Wang Weizhong, Yellen expressed growing apprehension within the Biden administration regarding China’s overproduction across various sectors such as electric vehicles, solar panels, and semiconductors. She highlighted the adverse effects on both China and producers in other nations, advocating for a transition away from state-driven investment toward market-oriented reforms.

In addition to economic concerns, Yellen emphasized areas of mutual interest between the U.S. and China, including combating climate change and addressing illicit finance. She disclosed the ongoing efforts of a financial working group, comprising representatives from both nations, aimed at mitigating financial risks associated with potential bank failures.

people Bank of China makes a cut of Cash reserve Ration for all banks for 50bps on Friday

Despite escalating tensions between the two countries, Yellen stressed the importance of maintaining open communication on challenging issues like overcapacity and national security-related economic restrictions, emphasizing the expectations of the global community.

While Yellen refrained from issuing direct threats of new trade barriers during her visit, some trade experts interpret the heightened U.S. criticism of China’s economic model as a precursor to potential tariff adjustments aimed at protecting U.S. industries. Yellen acknowledged the possibility of further actions to safeguard American supply chains.

Moreover, she sought to address concerns regarding the deteriorating business environment for foreign companies in China, citing instances of unfair treatment compared to local competitors. Yellen urged China to rectify such practices, emphasizing the benefits of a more equitable business climate.

Chinese state media countered Yellen’s assertions, characterizing them as indicative of a double standard in international trade discourse. Nevertheless, Yellen’s discussions continue in Beijing, following recent talks between U.S. and Chinese commerce officials in Washington. Both sides raised concerns regarding overcapacity and trade-related issues, underscoring the complex dynamics shaping Sino-U.S. economic relations.

USD: Yellen’s China Economic Meetings

The US Treasury Secretary Janet Yellen met with China Governor on Friday through Monday. Janet Yellen said China is doing overcapacity production it is the biggest threat to other western nations. Excess supply in the Domestic market makes exports to other countries, it is not issue, but over production of Semiconductors, Solar panels and advanced technologies is the threat to competitors in the Global world. We have to give business for others not fully occupying space in the Full sectors. China said US put tariffs on China imports in US. One Third of US Companies treated as low when compared to local china companies in China is claimed by US Companies to US Government. This is tit for Tat scenario going between US and China on Business models.

USDCHF is moving in Ascending channel and market has fallen from the higher high area of the channel

USDCHF is moving in Ascending channel and market has fallen from the higher high area of the channel

This meeting did not change whole business model between US and China, they are just saying the concerns about china and welfare about Global countries due to China excess production.

U.S. Treasury Secretary Janet Yellen embarked on her second trip to China since the summer, signaling efforts to enhance high-level communication amid strained relations between the two countries. Alongside Yellen, U.S. Secretary of State Antony Blinken is slated to visit China later this year, underscoring the commitment to fostering dialogue.

Ahead of her arrival, Yellen expressed the necessity for ongoing and deepening dialogue at various levels to mitigate misunderstandings that may arise due to previous communication gaps.

Yellen’s itinerary encompasses meetings in Guangzhou, the capital of Guangdong province known for its robust export industry, and Beijing, the national capital. Her schedule includes engagements with Vice Premier He Lifeng, Guangdong Governor Wang Weizhong, economic experts, business representatives from AmCham China, Premier Li Qiang, Finance Minister Lan Fo’an, Beijing Mayor Yin Yong, leading Chinese economists, and students and professors from Peking University. Additionally, she is set to meet with former Vice Premier Liu He and People’s Bank of China Governor Pan Gongsheng.

USD Demand Petrol Gases and Coal buying in terms of US Dollar so demand automatically increasing for US Dollar.

Discussions during the meetings are expected to revolve around addressing unfair trade practices and highlighting the global economic repercussions of China’s industrial overcapacity. China’s manufacturing prowess, fueled by subsidies and policy support, has drawn international attention, particularly regarding the pricing disparities of products like solar panels, raising concerns of trade tensions.

Guangdong province, a powerhouse in China’s export landscape, emphasizes productivity enhancement and aims to bolster sectors such as new energy storage, biomanufacturing, and commercial aviation.

In addition to economic matters, Yellen will focus on expanding bilateral cooperation on countering illicit finance to combat criminal activities like drug trafficking and fraud. Moreover, discussions will extend to bolstering financial stability, tackling climate change, and addressing debt distress in developing nations.

Yellen’s rendezvous with Vice Premier He Lifeng marks their third meeting, with further interactions scheduled at the International Monetary Fund and World Bank Group spring meetings in Washington, D.C. He Lifeng, also holding the position of Director of the Office of the Central Commission for Financial and Economic Affairs, plays a pivotal role in Sino-U.S. economic dialogues.

USD: Yellen Advocates Fairness for US Workers and Firms in China Visit

The US Treasury Secretary Janet Yellen met with China Governor on Friday through Monday. Janet Yellen said China is doing overcapacity production it is the biggest threat to other western nations. Excess supply in the Domestic market makes exports to other countries, it is not issue, but over production of Semiconductors, Solar panels and advanced technologies is the threat to competitors in the Global world. We have to give business for others not fully occupying space in the Full sectors. China said US put tariffs on China imports in US. One Third of US Companies treated as low when compared to local china companies in China is claimed by US Companies to US Government. This is tit for Tat scenario going between US and China on Business models.

USD Index Market Price is moving in Ascending channel and market has reached higher low area of the channel

USD Index Market Price is moving in Ascending channel and market has reached higher low area of the channel

This meeting did not change whole business model between US and China, they are just saying the concerns about china and welfare about Global countries due to China excess production.

U.S. Treasury Secretary Janet Yellen commenced her five-day visit to China by emphasizing the urgent need for addressing manufacturing overcapacity, which poses significant risks of global economic disruption. During talks with senior Chinese officials in Guangzhou, a major industrial and export hub, Yellen underscored the imperative of establishing a level playing field for American companies and workers.

Yellen articulated the United States’ aspiration for a mutually beneficial economic relationship with China, contingent upon equitable opportunities for firms and workers from both nations. She reiterated concerns regarding what the U.S. perceives as unfair trade practices employed by China, which tilt the competitive landscape against American interests.

The visit, Yellen’s second to China since President Joe Biden’s meeting with Chinese leader Xi Jinping in November, seeks to foster transparent and direct communication on contentious issues. Yellen emphasized the importance of addressing China’s industrial overcapacity, a concern shared by multiple countries, to avert global economic turbulence.

In Guangzhou, home to prominent Chinese companies like Huawei and BYD, Yellen engaged in discussions highlighting the adverse impacts of China’s subsidized manufacturing on international markets, particularly in sectors such as green technologies. She stressed the necessity for China to adjust its policies to mitigate the risks posed by excessive production capacity.

Yellen’s engagement in China extends beyond economic matters to include cultural exchange, as evidenced by her visit to a renowned local restaurant and interactions with social media. However, the core focus remains on addressing economic disparities and fostering fair competition.

Economic trade war between the USA and China in hand arms

Despite China’s assertions regarding the benefits of its export-driven growth strategy, concerns persist among U.S. policymakers and industry leaders regarding the potential ramifications on domestic industries. Yellen reiterated the U.S. commitment to utilizing all available policy tools, including tariffs, to respond to China’s subsidized manufacturing practices, particularly in the green energy sector.

As discussions continue between the two nations, the outcome of Yellen’s visit is anticipated to provide insights into the trajectory of Sino-U.S. economic relations and potential measures to address longstanding trade imbalances and industrial challenges.


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