Yellen To Convey Concerns About Chinese Industrial Overcapacity

US Treasury Secretary Janet Yellen will travel to China April 3-9, "to continue economic dialogue with top Chinese officials," and convey US concerns about increased Chinese industrial production and use of subsidies in key industries.

• According to a Treasury official, Yellen will meet with Vice Premier He Lifeng and US business executives in Guangzhou on April 5 and People's Bank of China Governor Pan Gongsheng on April 8.
• NYT notes: "The trip comes as the Biden administration tries to balance a tougher stance toward China, including restricting access to American technology and retaining tariffs on billions of Chinese exports, while keeping regular lines of communication open and avoiding an economic war."
• According to Reuters, Yellen will underscore to Chinese officials the global economic consequences of Chinese industrial overcapacity and look to learn more about developments in China’s property market and latest growth targets.
• The Treasury official notes that Yellen will seek cooperation with China on climate change, financial stability, illicit finance, developing country debt distress and emphasize targeted actions to protect US national security.
• Yellen's itinerary comes in the wake of headlines from a call between US President Joe Biden and Chinese President Xi Jinping - their first since November.
• Xinhua notes that Xi told Biden: "Taiwan question is the first red line that cannot be crossed in China-us relations... We hope that the US side will translate into actions the positive statement made by President Biden of not supporting 'Taiwan independence.'"