US Treasury Secretary Yellen Initiates Anti-Money Laundering Partnership with China

US Treasury Secretary Janet Yellen unveiled an ambitious joint initiative with Chinese Vice Premier He Lifeng during her visit to China on Saturday, announcing the establishment of a specialized forum aimed at bolstering cooperation on anti-money laundering efforts within their respective financial systems. Yellen emphasized the significance of this collaborative effort, stating, "This new endeavor will serve as a platform for the US and China to exchange best practices and provide updates on the measures we are implementing to address vulnerabilities in our financial systems."

Following two days of extensive economic deliberations held in Guangzhou, China, Yellen and He reached a consensus to launch a series of exchanges focused on fostering balanced growth in both domestic and global economies. Yellen underscored the importance of these exchanges, particularly in addressing US concerns regarding China's surplus manufacturing capacity, stating, "These discussions will facilitate a comprehensive dialogue on macroeconomic imbalances, including their correlation with overcapacity. I intend to leverage these discussions to advocate for fair competition for American workers and businesses."

Characterizing the discussions as constructive and transparent, Yellen reiterated her primary objective during her visit, which was to urge Chinese authorities to address the issue of excess production capacity, particularly in sectors such as electric vehicles and solar panels, which pose significant challenges to firms in the US and other countries.

However, Chinese state media rebuffed Yellen's arguments on excess capacity, accusing the US of using them as a pretext to justify protectionist policies. Xinhua, China's state news agency, contended that Washington's stance undermined China's economic growth and global cooperation efforts, urging the US to prioritize fostering innovation and competitiveness domestically.

Yellen and He, alongside their respective teams, engaged in exhaustive discussions spanning over four and a half hours on Saturday, covering a wide array of economic issues. Among the key topics discussed were US concerns regarding China's burgeoning exports of electric vehicles, solar panels, and other goods, which emerged as a top priority for the Treasury Secretary.

Scheduled to address reporters later on Saturday, Yellen's visit to Guangzhou builds upon her remarks to US business representatives on Friday, where she articulated growing apprehensions over the global economic ramifications of China's surplus manufacturing capacity, particularly in the clean energy sector.

Despite Yellen's assertions, Xinhua rebuked the US stance on Chinese overcapacity, characterizing it as a pretext for implementing protectionist policies. The editorial accused Washington of resorting to protectionism under the guise of national security, cautioning against such measures.

Yellen's itinerary includes a series of high-level meetings with various Chinese officials in Beijing through Monday, including Premier Li Qiang, Finance Minister Lan Foan, and People's Bank of China Governor Pan Gongsheng, as outlined in a press advisory issued by the Treasury Department.

By fLEXI tEAM