Yellen: Emerging markets share concerns on China’s excess factory capacity

 Yellen: Emerging markets share concerns on China’s excess factory capacity

By David Lawder

RIO DE JANEIRO (Reuters) – U.S. Treasury Secretary Janet Yellen said on Friday that rising markets, in conjunction with some G20 international locations, share her concerns about China’s extra industrial potential and can fair press Beijing to vary its economic model.

THE TAKE:

Yellen told Reuters in an interview that the worries about China overinvesting in factories and flooding the sphere with cheap goods extends properly beyond the properly off G7 democracies to international locations in conjunction with G20 host Brazil, which has raised tariffs on Chinese language steel and electrical automobiles.

Yellen said that China is now not any longer taking advice from other international locations and the World Monetary Fund to revive its economic system with measures to amplify shopper spending and ask for services and products.

As an different, Beijing turned into once channeling too principal of its GDP into investment in evolved manufacturing that is flooding the sphere with cheap Chinese language goods, in conjunction with that China’s economic system turned into once now too trim to develop by procedure of that model.

© Reuters. FILE PHOTO: U.S. Treasury Secretary Janet Yellen at the G20 finance leaders meeting in Rio de Janeiro, Brazil, July 26, 2024. REUTERS/Tita Barros/File Characterize

KEY QUOTE:

“There are rather about a international locations around the sphere which might presumably be no longer engaging to order, “Nicely, China, you would like dominate manufacturing, so all of our manufacturing sectors can precise slip out of enterprise since you ought to be the sphere’s manufacturing facility. We’re no longer engaging to assign that,'” Yellen said. “And that is the reason the fundamental ingredient that unites us, and that ought to be a message that we’re sending.”

Read More

Digiqole Ad

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *