US Treasury Secretary Yellen meets foreign business leaders in China ahead of trade talks

The U.S. treasury secretary has started her trip to China with a morning meeting with American, European and Japanese business representatives in the world’s second-largest economy

U.S. Treasury Secretary Janet Yellen kicked off a trip to China on Friday with a morning meeting to hear the concerns of American, European and Japanese business representatives in the world's second-largest economy, ahead of what will likely be tough talks on trade and other issues with senior Chinese government officials.

Yellen, the first Cabinet-level official to visit China since President Joe Biden met Chinese leader Xi Jinping last November, shook hands with the heads of the American and European chambers of commerce in China after arriving for the meeting in the southern industrial hub of Guangzhou.

She has telegraphed that she will press concerns during her five-day China trip about what the U.S. considers unfair Chinese trade practices, a concern shared by many European countries.

Eswar Prasad, a trade professor at Cornell University, expects Yellen to push Beijing to bolster domestic consumption and ensure fair competition in new technology sectors, especially green energy and electric vehicles, along with adequate market access for U.S. companies.

"Concerns about China attempting to export its overcapacity and simultaneously making a big push into these sectors will be top of mind for the U.S. delegation,” he said.

China has pushed back against the overcapacity concerns expressed by both the U.S. and Europe.

Foreign Ministry spokesperson Wang Wenbin said earlier this week that the growth in Chinese EV and solar exports is conducive to green development globally and the result of the international division of labor and market demand.

He accused the U.S. of interfering with free trade by restricting technology exports to China.

“As for who is doing non-market manipulation, the fact is for everyone to see,” he said. “The U.S. has not stopped taking measures to contain China’s trade and technology. This is not ‘de-risking,’ rather, it is creating risks.”