Washington, Beijing to launch exchanges amid growing concerns over China's overproduction capacity

US-China economic talks: The US Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng have agreed to initiate exchanges focusing on balanced growth in domestic and global economies, as well as cooperation on anti-money laundering efforts in their respective financial systems. Yellen stressed that these discussions will involve addressing macroeconomic imbalances, particularly concerning China's excess manufacturing capacity, and advocating for fair competition for American workers and firms.

Yellen described the talks as productive and direct, aiming to persuade Chinese officials to address overproduction capacity in sectors such as electric vehicles and solar panels, which pose challenges to competitors globally. However, Chinese state media countered Yellen's arguments, dismissing them as a pretext for protectionist US policies and urging Washington to focus on fostering innovation and competitiveness domestically instead.

Yellen and her team engaged in extensive discussions with Chinese counterparts, with the issue of China's expanding exports being a top concern for the US Treasury Secretary. She is expected to address reporters later to elaborate on the discussions.

Yellen's visit includes meetings with various Chinese officials, including Premier Li Qiang, Finance Minister Lan Foan, and People's Bank of China Governor Pan Gongsheng, extending until Monday in Beijing following her engagements in Guangzhou.

(With Reuters inputs.)