Key Points
US Treasury chief Janet Yellen warned during a visit to China on Friday that Beijing's subsidies for industry could pose a risk to global economic resilience...
She expressed concerns about China's "overcapacity" undercutting American and other countries' companies..
"Direct and indirect government support is currently leading to production capacity that significantly exceeds China's domestic demand, as well as what the global market can bear," she told a gathering of the US business community in Guangzhou on Friday...
Such fears are not part of an "anti-China policy", she said during a question-and-answer session after the speech, but are intended to mitigate risks from "inevitable global economic dislocation that will result" from no change in Chinese policies...
Yellen in the morning told the governor of Guangdong -- a vast province emblematic of the reforms and development that drove China's breakneck growth -- that the United States was committed to a "healthy economic relationship"...
