US, China plan discussions on economic growth, manufacturing ‘overcapacity' issue: Yellen

The United States and China have agreed upon holding discussion to address a key American complaint about China's economic model, according to Treasury Secretary Janet Yellen.

Yellen, who is on a five-day official visit to China’s major industrial and export hubs said on her second day there that the two sides will hold more talks and create two new economic groups.

These will be focused on growth in domestic and global economies, as well as for anti-money laundering, a statement pertaining to the creation of these groups said. 

Yellen has so far maintained her focus on what the US considers to be unfair Chinese trade practices, during discussions with senior Chinese officials.

Yellen in her statement said she and her counterparts “agreed that the US and China will hold intensive exchanges on balanced growth in the domestic and global economies. These exchanges will facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity, and I intend to use this opportunity to advocate for a level playing field for American workers and firms.” 

These groups were announced after two days of extended meetings between Yellen and Vice Premier He Lifeng on April 5 and 6. 

Yellen said “these exchanges on balanced growth in the domestic and global economies are key to allowing us to deepen our understanding of China's policies and continue to express our concerns, as I have done in my meetings with Vice Premier He.”

(With AP Inputs)