Yellen Kicks Off China Meetings With Overcapacity Concerns

Treasury Secretary Janet Yellen kicked off her first full day of official meetings in China with discussion about overcapacity concerns and encouragement to pursue market-oriented reforms.

Yellen arrived in the southern Chinese city of Guangzhou late on Thursday and is set to travel to Beijing on Saturday, where she will stay until Tuesday. It is her second trip to China as Treasury secretary.

Ahead of a scheduled meeting Friday with Vice Premier He Lifeng, Yellen met with Wang Weizhong, governor of Guangdong province, of which Guangzhou is the capital.

“Throughout my engagements with my counterparts, I will stress that a healthy economic relationship can bring significant benefits for both our economies,” Yellen said in prepared remarks for her meeting with Wang.

“I’ve also emphasized that building a healthy economic relationship requires a level playing field for American workers and firms, as well as open and direct communication on areas where we disagree,” Yellen said. “This includes the issue of China’s industrial overcapacity, which the United States and other countries are concerned can cause global spillovers.”

Analysts at U.S.-based consulting firm Rhodium Group said in a report in late March that Chinese government support for manufacturing in recent years has resulted in a build-up of production capacity that exceeds domestic demand.

Read more here from NBC News.