Yellen Calls China Meetings 'Productive', Seeks Level Playing Field

US Treasury Secretary Janet Yellen (L) and Chinese Vice Premier He Lifeng (R) arrive for a bilateral meeting at the Guangdong Zhudao Guest House in Guangdong province, China, 05 April 2024.  EPA/Andy Wong / POOL
US Treasury Secretary Janet Yellen (L) and Chinese Vice Premier He Lifeng (R) arrive for a bilateral meeting at the Guangdong Zhudao Guest House in Guangdong province, China, 05 April 2024. EPA/Andy Wong / POOL
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Yellen Calls China Meetings 'Productive', Seeks Level Playing Field

US Treasury Secretary Janet Yellen (L) and Chinese Vice Premier He Lifeng (R) arrive for a bilateral meeting at the Guangdong Zhudao Guest House in Guangdong province, China, 05 April 2024.  EPA/Andy Wong / POOL
US Treasury Secretary Janet Yellen (L) and Chinese Vice Premier He Lifeng (R) arrive for a bilateral meeting at the Guangdong Zhudao Guest House in Guangdong province, China, 05 April 2024. EPA/Andy Wong / POOL

US Treasury Secretary Janet Yellen said on Saturday she had "productive conversations" with Chinese Vice Premier He Lifeng on the bilateral economic relationship after two days of meetings in China's southern export hub of Guangzhou.
"The US seeks to create a level playing field for American workers and firms, as well as deeper cooperation on illicit finance, climate change and other priorities," Yellen said in a post on X, formerly Twitter.
Her post did not directly mention her top priority for her four day visit to China: to try to persuade Chinese officials to rein in excess production capacity for electric vehicles, solar panels and other clean energy technology that are threatening competing firms in the US and other countries, Reuters said.
Chinese state media pushed back on her excess capacity arguments, calling them a "pretext" for protectionist US policies.
Such comments seek to undermine China's domestic growth and international cooperation, and Washington should focus on fostering innovation and competitiveness within its own borders instead of resorting to "fear-mongering," state news agency Xinhua said in an editorial late on Friday.
Yellen, He Lifeng and their teams held over four and a half hours worth of meetings on Saturday on a range of economic topics, with US concerns about China's growing exports of electric vehicles, solar panels and other goods the biggest priority for the Treasury chief.
Yellen is expected to speak with reporters later on Saturday.
Yellen told US businesspeople in China's southern export hub of Guangzhou on Friday that concerns are growing over the global economic fallout from China's excess manufacturing capacity, making the issue the focus of her four days of meetings with Chinese officials.
Citing China's overproduction of electric vehicles, solar panels, semiconductors and other goods that are flooding into global markets in the face of a demand slump in China's domestic market, Yellen said this was not healthy for China and was hurting producers in other countries.
"Talking up 'Chinese overcapacity' in the clean energy sector also smacks of creating a pretext for rolling out more protectionist policies to shield US companies," Xinhua said.
"After all, it is now known by the world that Washington will not hesitate to show its protectionist teeth under the guise of national security in areas where its supremacy is challenged."
Yellen met with Vice Premier He Lifeng and Guangdong Province Governor Wang Weizhong in Guangzhou after arriving in China late on Thursday.
She is to travel later on Saturday to Beijing, where she will meet officials including Premier Li Qiang, Finance Minister Lan Foan and People's Bank of China Governor Pan Gongsheng through Monday, according to a Treasury press advisory.



China Exempts Some Goods from US Tariffs to Limit trade War Pain

TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT
TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT
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China Exempts Some Goods from US Tariffs to Limit trade War Pain

TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT
TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT

China has exempted some US imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified, in the clearest sign yet of Beijing's concerns about the trade war's economic fallout.

The dispensation, which follows de-escalatory statements from Washington, signals that the world's two largest economies were prepared to rein in their conflict, which had frozen much of the trade between them, raising fears of a global recession.

Beijing's exemptions - which business groups hope would extend to dozens of industries - pushed the US dollar up slightly and lifted equity markets in Hong Kong and Japan.

“As a quid-pro-quo move, it could provide a potential way to de-escalate tensions," said Alfredo Montufar-Helu, a senior adviser to the Conference Board's China Center, a think tank.

But, he cautioned: "It’s clear that neither the US nor China want to be the first in reaching out for a deal."

China has not yet communicated publicly on any exemptions. A Friday statement by the Politburo, the Communist Party's elite decision-making body, focused on efforts to maintain stability at home by supporting firms and workers most affected by tariffs.

The readout, which followed the Politburo's regular monthly meeting, showed that Beijing was also ready to hunker down and fight a trade war of attrition if needed to outlast Washington in enduring the pain from the breakdown of their relationship.

A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a person with knowledge of that outreach.

The ministry said on Thursday it had held a meeting with more than 80 foreign companies and business chambers in China to discuss the impact of US tariffs on investment and the operation of foreign firms in the country.

"The Chinese government, for example, has been asking our companies what sort of things are you importing to China from the US that you cannot find anywhere else and so would shut down your supply chain," American Chamber of Commerce in China President Michael Hart said.

Hart added some member pharmaceutical companies had reported being able to import drugs to China without tariffs. He believed the exemptions were drug-specific, not industry-wide.

The chief executive of French aircraft engine maker Safran said on Friday it had been informed last night that China had granted tariff exemptions on "a certain number of aerospace equipment parts" including engines and landing gear.

The tariff exemptions under consideration by Beijing could provide cost relief for companies in China and take pressure off US exports at a time when the Trump administration has shown signs of wanting to make a deal with Beijing.

The European Union Chamber of Commerce in China also said it had raised the issue of tariff exemptions with the commerce ministry and was awaiting a response.

"Many of our member companies are significantly impacted by the tariffs on critical components imported from the US," President Jens Eskelund said.

A list of 131 categories of products said to be under consideration for tariff exemptions was circulating on Chinese social media platforms and among some businesses and trade groups on Friday. Reuters could not verify the list, which included items ranging from vaccines and chemicals to jet engines.

Huatai Securities said the list corresponded to $45 billion worth of imports to China last year.

China's customs agency and Ministry of Commerce did not reply to requests for comment. China's foreign ministry said it was not familiar with tariff exemption plans, redirecting queries to "relevant authorities".