Yellen Urges Push Against China's Economic Model

U.S. Treasury Secretary Janet Yellen urged emerging markets and G20 countries to address China's overinvestment in industrial capacity. She stated that China's focus on manufacturing is problematic, and there is a unity among nations to press Beijing for changes to revive its economy by increasing consumer spending.

U.S. Treasury Secretary Janet Yellen on Friday called on emerging markets and some G20 countries to press Beijing to change its economic model, citing concerns about China's overinvestment in industrial capacity.

In an interview with Reuters, Yellen emphasized that issues with China's oversupply extend beyond G7 democracies and affect countries like G20 host Brazil, which has increased tariffs on Chinese steel and electric vehicles.

Yellen noted that China is ignoring international advice to boost consumer spending and services demand, instead channeling its GDP into advanced manufacturing. She warned that China's economy is too large to continue growing through this outdated model.

(With inputs from agencies.)