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Fenelon L.
During her visit to China, United States Treasury Secretary Janet Yellen sounded the alarm about the massive subsidies Beijing provides to its industry. These subsidies could destabilize the global economy by leading to overcapacity in production.
The American Concerns About Chinese Subsidies
Janet Yellen, who has been in China for four days, expressed her concerns about the consequences of significant Chinese subsidies on the world economy.
“Direct and indirect government aid leads to production capacity far exceeding domestic demand and what the global market can bear,” she stated.
This situation risks leading to an overabundance of goods and flooding the international markets, thus threatening the viability of American and foreign companies. “Overcapacities can lead to significant volumes of exports at low prices and an…
