China’s support for certain sectors poses a threat to other countries, Yellen says

US Treasury Secretary Janet Yellen said that Beijing’s substantial fiscal support for some sectors could pose a threat to other countries as trade tensions escalate between the world’s two largest economies.

Yellen said at a press conference in San Francisco that she had discussed “supply glut issues” with her Chinese counterpart, Deputy Prime Minister He Lifeng.

“We have addressed the issues of excessive supply increases that have arisen and may arise in the future in sectors where China is investing heavily, which is dangerous, and I think Chinese officials understand our fears that some of these investments could cause a productive glut,” she explained.

Yellen also added that she discussed China’s slowing economic growth with ministers of the Asia-Pacific Economic Cooperation Forum (APEC), who agreed with her that it represented a “downside risk to economic prospects”, particularly for Forum States with strong trade relations with Beijing.

China and the United States pledged to create “equal opportunities” for companies and workers in the two countries, according to statements issued after the parties met at the beginning of the conference.