China responded “fully and rationally” to the concerns raised by US Treasury Secretary Janet Yellen, who was in China on April 4-9, regarding the PRC’s industrial strength. The State Council of China issued a statement about this.
In a briefing with reporters on the occasion of the visit of the American official, Chinese Vice Minister of Finance Liao Min said that the issue of industrial capacity should be considered while maintaining the principles of market economy and the law of value.
“The so-called ‘superpower’ is a manifestation of the market mechanism playing its role. The balance of supply and demand is relative, while imbalance is often the norm,” Liao Min said.
Noting that overcapacity has appeared many times throughout history both in the US and in other Western countries, the deputy minister said that the solution to these problems mainly depends on “the market adjusting itself according to the law of value”.
At the same time, the deputy minister noted that the industrial capacity should be analyzed based on the real situations in the world market. He cited alternative energy vehicles as an example, the demand for which is far greater than the current supply.
“China has taken note of the concerns of the United States and other relevant parties, and is willing to strengthen communication and coordination with all parties to rationally consider and properly resolve differences based on adherence to the principle of marketization,” Liao Min said, adding, that China will continue contacts with the American side on this issue at the working group level.
Janet Yellen said at a press conference in Beijing on April 8 that she was worried about the “increasing negative impact” that China’s economy was having on the United States and the world.
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