U.S. Treasury Secretary Janet Yellen visited China and held talks with Vice Premier He Lifeng, who is in charge of finance and economic policy. It appears that a heated discussion took place over each other's subsidy policies for EVs (electric vehicles).
On the 5th, U.S. Treasury Secretary Yellen met with Vice Premier He Lifeng, who oversees financial and economic policy, in Guangzhou, southern China.
Vice Premier He said, ``The main purpose of the meeting is to build on the good communication to date and promote the stable, healthy, and sustainable development of economic relations between China and the United States.'' He expressed his hope for stabilizing the relationship between the two countries.
In response, Secretary Yellen said, ``We want a healthy economic relationship that benefits both countries,'' adding, ``A healthy economic relationship must provide a level playing field for businesses and workers in both countries.'' ” he said.
At this meeting, Secretary Yellen plans to demand action on the grounds that the Chinese government's huge subsidy policy for EVs and other products is causing overproduction and negatively impacting the global economy.
On the other hand, the Chinese government has filed a lawsuit with the World Trade Organization (WTO) claiming that America's tax incentives such as EVs are distorting fair competition.
It appears that there was a heated discussion between the two governments regarding each other's subsidy policies.