US criticism of Chinese overcapacity rehashes ‘China threat’ rhetoric, claims Xinhua – Times of India

NEW DELHI: The commentary from Xinhua, a state news agency, suggested that US treasury secretary Janet Yellen’s remarks regarding China’s surplus manufacturing capacity remarks are reminiscent of the “China threat” narrative and may serve as a justification for further protectionist measures from the America.
Xinhua’s editorial, released late on Friday, asserts that such comments aim to undermine China’s domestic economic development and international collaborations.Instead, the editorial suggests that Washington should prioritize fostering innovation and competitiveness within its own borders, rather than resorting to fear-mongering tactics.
Yellen’s comments were made during discussions with US business figures in Guangzhou, a prominent export center in southern China. She expressed concerns about the global economic implications of China’s surplus manufacturing capacity, which has led to an influx of goods such as electric vehicles, solar panels, and semiconductors into international markets, exacerbating the challenges faced by producers in other countries.
Xinhua’s editorial interprets Yellen’s emphasis on ‘Chinese overcapacity’ in sectors like clean energy as potentially laying the groundwork for the implementation of additional protectionist policies aimed at shielding US companies. The editorial suggests that such actions would align with a pattern where the United States leverages national security justifications to enforce protectionist measures, particularly in areas where its dominance is perceived to be under threat.
Yellen’s visit to China included meetings with Vice Premier He Lifeng and Guangdong Province governor Wang Weizhong in Guangzhou, followed by scheduled engagements in Beijing with officials such as Premier Li Qiang and People’s Bank of China governor Pan Gongsheng. The visit, spanning four days, appears to be focused on discussing various economic issues and bilateral relations between the two countries, according to information provided by the US Treasury.
(With agency inputs)