US, China to start new talks on balanced growth, says Yellen

US Treasury Secretary Janet Yellen said on April 6 that she and Chinese Vice-Premier He Lifeng have agreed to launch exchanges on balanced economic growth, an effort partly aimed at addressing US concerns about China's excess manufacturing capacity.

- 

After two days of economic talks in China's southern export hub of Guangzhou, Dr Yellen said the two of them have also agreed to start a forum to cooperate on anti-money laundering efforts in their respective financial systems.

The exchanges "will facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity, and I intend to use the opportunity to advocate a level playing field for American workers and firms", Dr Yellen said in a statement released at the conclusion of the talks.

She characterised the discussions as productive and frank.

Coming into her four-day visit to China, her top priority was to try to persuade Chinese officials to rein in excess production capacity for electric vehicles (EVs), solar panels and other clean energy technology that is threatening competing companies in the US and other countries.

Chinese state media pushed back on her excess capacity arguments, calling them a "pretext" for protectionist US policies.