Yellen: United towards Chinese industrial coverage | EUROtoday

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Janet Yellen strongly supported, yesterday in Frankfurt, the urgency of a joint response by the United States and Europe to China's industrial overcapacity. “We must respond to China's industrial policies in a strategic and united way to support American and European businesses,” mentioned the US Treasury Secretary.

For Yellen, China's industrial extra capability threatens industrial growth globally, notably in essentially the most superior clear vitality sectors: «China's industrial coverage could seem distant as we sit right here on this room, however – she acknowledged – if we don’t reply strategically and in a united method, the survival of companies each in our nations and world wide may very well be in danger.”

Last week, the Biden administration announced new tariffs on several Chinese products: electric vehicles, solar panels, semiconductors, battery components, steel and other strategic components. In April, during a mission to Guangzhou, Yellen herself announced measures to prevent low-cost Chinese products from flooding global markets. “We want to protect workers and our businesses in the face of unfair competition from China,” Yellen said from the TechQuartier incubator in Frankfurt.

Washington has made it known that Chinese industrial overcapacity will be at the center of the financial G7 in the next few days in Stresa. “We share some of the US's concerns but we have a different, more targeted approach,” said the president of the EU Commission, Ursula von der Leyen, yesterday. «We are not in a trade war with China. It is necessary to distinguish – she added – between the decoupling, done with Russia, and the de-risking strategy”. Yellen, nonetheless, clarified that the opposite G7 nations won’t be requested to introduce the identical US tariffs: «All I’m suggesting – she defined – is that, on condition that many nations share this concern, we comply with work collectively, united, and thus have extra power with China.”

Even in direction of Vladimir Putin's Russia, the USA is asking for larger collaboration from Europe and European banks. “Russia is desperate for essential goods from advanced economies such as Germany and the United States, and we must remain vigilant to prevent the Kremlin from being able to replenish its defense industrial base and access our financial systems to do so,” he mentioned. Yellen in a gathering with German bankers, urging German banks to step up efforts to adjust to sanctions towards Russia by avoiding any makes an attempt to bypass them. In an unusually direct warning, Yellen advised German executives to watch the exercise of international branches: two weeks in the past the US Treasury had put stress on Raiffeisen Bank International, convincing the Austrian financial institution, the biggest Western financial institution in Russia, to withdraw from an settlement that additionally concerned the Russian tycoon Oleg Deripaska.