U. S. Democrats have urged the Trump administration to encourage China to reduce its “structural overproduction” as Treasury Secretary Scott Bessent discusses trade issues with Chinese officials in Spain. A letter from Democratic members of a House committee on China stresses that any trade deal must include binding commitments for China to limit its industrial overcapacity, as China’s production exceeds domestic consumption, leading to significant exports and domestic price wars.
Chinese officials have rejected U. S. claims about overcapacity, but they have started efforts to combat deflation and price wars in some industries. Bessent and Trade Representative Jamieson Greer began negotiations in Madrid with a Chinese delegation led by Vice Premier He Lifeng. The communication from House members echoes concerns raised by the Biden administration and highlights the bipartisan anxiety regarding China.
The letter emphasizes the negative impact of China’s overproduction on U. S. jobs and industries. It suggests that overcapacity issues, particularly in sectors such as steel and solar panels, should be a key focus in talks. It also calls for a collaborative international response and a more balanced tariff strategy, acknowledging the complexities of previous tariff policies that have affected U. S. allies.
With information from Reuters
