China's direct and indirect public support "is currently leading to production capacity that significantly exceeds domestic demand, as well as what the global market can bear." US Treasury Secretary Janet Yellen said this while meeting the American business community in Guangzhou.
“I understand that these policies may be driven by domestic development goals, but excess capacity can lead to large volumes of exports at low prices,” Yellen added, according to a Treasury Department memo. All this represents "a risk to global economic resilience".
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