Yellen: China Industrial Policy May Damage US-China Econ Relationship

MNI London: US Treasury Secretary Janet Yellen, speaking at the Economic Club of New Yorkon President Biden's economic agenda, has warned that, "China’s industrial policy, overcapacity path may hurt efforts to build a healthy US-China economic relationship."

• Select comments per Reuters: "China’s high savings rate is fuelling excessive investment in manufacturing capacity that threatens American workers."
• Yellen: "Scale of China’s industrial subsidies far exceed those of other countries, world cannot absorb huge quantities of excess Chinese production.”
• As previewed in today's MNI US Daily Brief, Yellen notes in her speech that, "traditional 'supply-side' economics relies too heavily on tax cuts, ignores importance of public infrastructure, workforce, research investments."
• Yellen says President Biden's economic strategy, "needs both public investment and private sector investment to sustain growth, prosperity."
• Earlier this afternoon, former President Donald Trump provided a split screen of his economic vision during a 'fireside chat' with former advisor Larry Kudlow at a Business Roundtable event in Washington D.C.
• The event was attended by over 100 Wall Street and Business leaders, including previously Trump-sceptic figures like J.P. Morgan CEO Jamie Dimon, who have recently moved to hedge a potential Trump win in November.
• Reuters notes: "Trump's campaign has been light on specifics about his economic plans, but he has pledged to continue and perhaps add to Republican-passed tax cuts that he signed into law in 2017. He has said he wants to offer tax relief to the middle class, reduce regulations and expand fossil-fuel energy production while reversing Biden's clean energy initiatives."