Economic Concerns Amid China’s Excess Capacity
Concerns Over Global Economic Impact
U.S. Deputy Treasury Secretary Wally Adeyemo expressed worries about China’s surplus manufacturing capacity affecting the global economy. Despite China’s current economic challenges, he believes that the U.S. economy is unlikely to be significantly slowed down in the near future.
Challenges from China
Adeyemo highlighted issues such as China’s property sector, an aging population, and a deteriorating business environment for private companies as potential hurdles. He emphasized the threat posed by China’s excessive manufacturing capacity on industries like electric vehicles and solar panels.
Addressing Overcapacity
China’s heavily subsidized industries have been producing more goods than their domestic market can absorb, leading to concerns about global overcapacity. Adeyemo mentioned that U.S. initiatives like tariffs and tax credits for electric vehicles aim to level the playing field for American companies.
International Dialogue
Adeyemo stated that ongoing discussions with Chinese authorities are focused on fostering fair competition globally. Treasury Secretary Janet Yellen is expected to raise concerns about Chinese excess capacity during an upcoming meeting with G20 finance ministers in Brazil.
Strengthening the U.S. Economy
Adeyemo highlighted the Biden administration’s efforts to enhance the U.S. economy through investments in infrastructure, semiconductors, and clean energy technologies. He emphasized the importance of maintaining the dollar’s dominance in the global economy through strategic policies.
