Shehzad Kazi, Managing Director of China Beige Book International, joins Yahoo Finance Live to discuss Treasury Secretary Janet Yellen’s visit to China regarding economic tensions. Kazi said Yellen was not the right choice if the US wanted to send a “serious message” to China, saying Yellen’s warnings were “dovish” and would not be taken seriously by Beijing. He praised it.
Kazi also said the Biden administration is “running into some trouble” with larger industrial policy, suggesting there is room for improvement in the U.S. approach. He highlighted the example of TSMC’s planned production delays, suggesting that the Chinese government may be conveying a message that the United States “can’t really compete with us as much as you think.” suggested.
Regarding Yellen’s discussion of not ruling out the possibility of tariffs on China’s green exports, Kazi acknowledges that the administration must take action by 2025, but questions how far the administration will go in imposing trade tariffs. I have doubts as to whether this is his intention. Kazi said the Trump administration’s “very aggressive actions” on trade will have a big impact on prices, but there is “more continuity” in the Biden administration’s approach.
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Editor’s note: This article was written by angel smith
