Washington, D.C.: US Deputy Treasury Secretary Wally Adeyemo expressed apprehensions regarding China’s surplus industrial capacity and its potential ramifications for the global economy during discussions on Friday.
Nevertheless, Adeyemo provided reassurance that China’s economic challenges are unlikely to hinder US growth in the foreseeable future.
Highlighting China’s surplus capacity, particularly in sectors such as electric vehicles and solar panels, Adeyemo underscored the threat it poses to global markets.
He stressed the importance of equitable competition and voiced confidence in US tariffs and tax incentives to uphold a fair playing field for American companies.
Addressing the issue of excess capacity, Adeyemo emphasized its significance in promoting fair competition on a global scale. He mentioned ongoing dialogues with Chinese counterparts to ensure equitable trade practices, not only between the US and China but also among other nations worldwide.
US Treasury Secretary Janet Yellen is expected to address concerns regarding Chinese excess capacity during discussions at the Group of 20 finance ministers meeting in Sao Paulo, Brazil, scheduled for next week.
In addition to discussing China’s economic challenges, Adeyemo tackled the impact of US sanctions on the dollar’s status as the world’s reserve currency.
He highlighted the importance of multilateral and targeted sanctions for maximum effectiveness while downplaying concerns over potential repercussions on the dollar’s dominance.
Adeyemo also underscored the significance of Biden administration policies, including investments in infrastructure, semiconductors, and clean energy technologies, in bolstering the appeal of the US as an investment hub.
Expressing confidence in the sustainability of these policies, Adeyemo affirmed that the dollar and America’s financial system will continue to wield substantial influence globally.
