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.



France's 2026 Deficit Target Implies 40 billion Euros of Savings, Minister Says

French Minister for Economy, Finance, Industrial and Digital Security Eric Lombard looks on during the questions to the government session at the National Assembly in Paris, France, March 18, 2025. REUTERS/Sarah Meyssonnier/File Photo
French Minister for Economy, Finance, Industrial and Digital Security Eric Lombard looks on during the questions to the government session at the National Assembly in Paris, France, March 18, 2025. REUTERS/Sarah Meyssonnier/File Photo
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France's 2026 Deficit Target Implies 40 billion Euros of Savings, Minister Says

French Minister for Economy, Finance, Industrial and Digital Security Eric Lombard looks on during the questions to the government session at the National Assembly in Paris, France, March 18, 2025. REUTERS/Sarah Meyssonnier/File Photo
French Minister for Economy, Finance, Industrial and Digital Security Eric Lombard looks on during the questions to the government session at the National Assembly in Paris, France, March 18, 2025. REUTERS/Sarah Meyssonnier/File Photo

France's plan to lower its budget deficit to 4.6% of economic output in 2026 from 5.4% this year implies finding 40 billion euros ($45.4 billion) of savings, finance minister Eric Lombard said on Sunday.

"I am sticking to the target of 4.6% for 2026, which will require an extra and very considerable effort worth 40 billion euros," Lombard told BFM TV.

"We are in a state of emergency, regarding our budget," he added, Reuters reported.

France, the euro zone's second-biggest economy, is targeting a gradual reduction in its budget deficit in order to meet EU rules.

As a first step, it wants to trim the deficit to 5.4% of economic output this year from 5.8% last year, with a view to bringing the shortfall in line with an EU ceiling of 3% by 2029.

France cut its 2025 economic growth forecast to 0.7% from 0.9% on Wednesday, reflecting uncertainty from the global trade war caused by US President Donald Trump's tariffs.