Washington has expressed concern to Beijing about the repercussions for American households and businesses of China’s industrial policy, which could lead to too much production to compensate for the crisis in the Chinese real estate sector, the American Department of the Treasury said on Tuesday.
• Read also: (PHOTOS) In China, for lack of a Taylor Swift concert, fans console themselves at the cinema
• Read also: Congress to vote on package for Israel that Biden opposes
The world’s two largest economies held the third meeting of the economic working group set up in October by the two countries to try to strengthen their ties on Monday and Tuesday in Beijing.
US officials “raised issues of concern, including China’s industrial policy practices and overcapacity, as well as the consequences for American businesses and workers,” the US Treasury said in a statement released Tuesday, following Of the reunion.
China, facing an unprecedented crisis in the real estate sector – one of the pillars of its economy – is striving to stimulate its new growth engines, including electric vehicles and batteries, fueling fears of excessive production , faced with lower demand.
Chinese household consumption, in fact, remains at half mast. As for exports, last year they experienced their first decline in seven years, penalized by geopolitical tensions and sluggish global demand.
Overcapacity is becoming a concern in certain sectors, a recently published business survey conducted by the American Chamber of Commerce in China showed.
The Chinese Ministry of Finance, for its part, during the two-day meeting, “expressed its concerns regarding the additional customs duties imposed by the United States on China, bilateral restrictions on investment, as well as sanctions and repression against Chinese companies,” according to a press release from Beijing.
Donald Trump, who could face Joe Biden in the November presidential election in the United States, plans, if he is re-elected, to impose customs duties of 60% on products imported from China, a- he confirmed Sunday, during an interview on the conservative channel Fox Business.
Last year, China recorded one of the lowest growth rates in three decades (5.2%), according to an official figure.
The next meeting of the China-US economic working group is scheduled to be held in April.
