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After two days of economic talks in China’s southern export hub of Guangzhou, Yellen said she and He also agreed to start a forum to cooperate on anti-money laundering efforts in their respective financial systems. Chinese state media pushed back on her excess capacity arguments, calling them a “pretext” for protectionist US policies.
Citing China’s overproduction of electric vehicles, solar panels, semiconductors, and other goods that are flooding into global markets in the face of a demand slump in China’s domestic market, Yellen said this was not healthy for China and was hurting producers in other countries.
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