US: We will not allow cut-price Chinese goods to flood the market

"The United States will not accept a situation where cut-price Chinese goods flood the world market, damaging other industries."
This was stated by the chairman of the US Federal Reserve, Janet Yellen, AFP reported.
Yellen's warnings came after talks with Chinese officials and business leaders in the southern city of Guangzhou and the capital, Beijing.
Washington fears that as Chinese government support creates more manufacturing capacity than global markets can absorb, a wave of cheap exports in sectors such as solar energy and electric vehicles could stifle the growth of those industries in other countries.
"More than a decade ago, the Chinese government's massive support flooded the world market with lower-priced steel. It destroyed industries around the world and in the US," the Federal Reserve chairman recalled.
"I have made it clear that President Biden and I will not accept this reality again," she said.
In addition to taking up the issue with Chinese Vice Premier He Lifeng in about 11 hours of talks, she also raised it with Premier Li Qiang, steps Washington hopes will bring those concerns to the highest levels of China's political leadership.
Yellen said she was particularly concerned about "imbalances" such as weak household consumption in China and overinvestment by businesses "exacerbated by large-scale government support in certain industrial sectors".
However, Beijing hit back, with China's Commerce Minister Wang Wentao calling fears of overcapacity "baseless".
The two sides agreed to open channels for further talks on overcapacity./BGNES