US Deputy Treasury Secretary Wally Adeyemo expressed apprehensions regarding China’s surplus industrial capacity and its potential repercussions on the global economy during remarks on Friday.
However, Adeyemo offered reassurances that China’s ongoing economic difficulties are unlikely to hinder US economic growth in the foreseeable future.
Adeyemo underscored the issue of surplus capacity emanating from China, particularly in sectors such as electric vehicles and solar panels, which he identified as a threat to global markets. He stressed the necessity for equitable competition and expressed confidence in US tariffs and tax incentives to uphold a level playing field for American enterprises.
According to Adeyemo, addressing the surplus capacity problem will be critical for fostering equitable competition on a global scale. He mentioned ongoing dialogues with Chinese counterparts aimed at ensuring fair trade practices not only between the US and China but also with other nations worldwide.
US Treasury Secretary Janet Yellen is expected to tackle concerns regarding China’s surplus capacity during discussions at the Group of 20 finance ministers meeting in Sao Paulo, Brazil, scheduled for next week.
In addition to addressing China’s economic challenges, Adeyemo discussed the impact of US sanctions on the dollar’s status as the world’s reserve currency. He acknowledged the significance of multilateral and targeted sanctions in maximizing effectiveness while downplaying concerns regarding potential harm to the dollar’s dominance.
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