US’s Yellen leads G7 Focus on China’s imbalances

US Treasury Secretary Janet Yellen stated Thursday that the Group of Seven (G7) finance ministers will address concerns about China’s surplus industrial capacity and potential responses, Reuters reported.

She emphasised that without policy changes in Beijing, their economies could be inundated with cheap Chinese goods.

“This week will be a key opportunity to discuss how China’s macroeconomic imbalances and industrial overcapacity can affect our economies,” Yellen told a news conference before the G7 finance meeting in Stresa, Italy.

“We’ll also discuss our responses and the approaches that we’re taking to raise these concerns directly with China.

Earlier this week, Yellen urged the United States and Europe to jointly address China’s excessive investment in electric vehicles, solar products, semiconductors, steel, and other critical sectors. She emphasised the need for a coordinated and strategic approach to sustain the viability of manufacturers on both sides of the Atlantic.