China’s export-focused government would benefit from reducing excess industrial capacity, which is putting strain on other countries, according to US Treasury Secretary Janet Yellen’s statement on Friday ( April 5 ) on the subject.
During a attend to China, Yellen stated in notes to an American Chamber of Commerce that she understood that Beijing’s direct and indirect state support for developing is related to its goals for domestic development.
However, she claimed that this “is now leading to production capacity that substantially exceeds both the global market’s capacity and China’s home demand.”
In later conversations with Chinese Vice Premier He Lifeng on Friday, Yellen’s comments made clear that her main goal was to highlight the issues that China’s growing exports and additional factory capacity are causing overseas, which is causing possible trade frictions.
In response to China’s struggle to conquer a house problems and fragile consumer demand, Premier Li Qiang set an optimistic growth goal of 5 % for 2024 in March.
The International Monetary Fund now forecasts China’s 2024 real GDP growth at 4.6 per share, falling to 4.1 per cent in 2025.