The US and China are deepening cooperation on financial stability issues, US Treasury officials said, with two more simulations of financial shocks scheduled after a recent exercise on dealing with the failure of a large bank.
Wrapping up a four-day meeting in China, Janet Yellen issued a stern warning to Chinese banks that facilitating transactions providing material support or dual-use goods to Russia for its Ukraine war effort would lead to "significant consequences."
Yellen said the financial stability exercises were developed by a US-China financial group formed last year when she first visited to try rebuilding economic ties.
She stressed that the US would not accept new industries being decimated by subsidized Chinese imports in the same way that the US steel sector was crushed a decade ago.
Meanwhile, China's commerce minister Wang Wentao kicked off a trip to Europe by meeting top Chinese automakers BYD (1211) and CATL, as he prepares to discuss an ongoing probe by the bloc into whether China's EV industry has benefited from unfair subsidies.
He held a meeting in Paris on Sunday with representatives from more than 10 enterprises that included Geely (0175). During the meeting, he reiterated that Chinese EV firms do not rely on subsidies to gain a competitive advantage and said accusations by the US and Europe of "overcapacity" were groundless.
Reuters
Janet Yellen and People’s Bank of China governor Pan Gongsheng before the meeting.
Reuters
