Washington has raised concerns with Beijing about the impact of China’s industrial policy on American households and businesses, which could lead to overproduction to offset a crisis in China’s real estate sector, the US Treasury Department said on Tuesday, as quoted by AFP.

The world’s two largest economies met in Beijing on Monday and Tuesday for the third meeting of an economic working group set up by the two countries in October to try to strengthen ties.

U.S. officials “raised issues of concern, including China’s industrial policy practices and overcapacity, and the implications for U.S. businesses and workers,” the U.S. Treasury Department said in a statement released Tuesday after the meeting.

Faced with an unprecedented crisis in the real estate sector – one of the mainstays of its economy – China is scrambling to boost its new growth engines, including electric cars and batteries, fueling fears of overproduction amid weak demand.

Household consumption in China remains sluggish. Last year, exports fell for the first time in seven years due to geopolitical tensions and weak global demand.

Overcapacity is a concern in certain sectors, according to a recent survey released by the American Chamber of Commerce in China.

For its part, China’s Ministry of Finance “expressed concern over additional tariffs imposed by the United States on China, bilateral investment restrictions, and sanctions and repression against Chinese companies” during the two-day meeting, according to a Beijing press statement. .

Donald Trump, who may face Joe Biden in the US presidential election in November, is considering introducing a 60% tariff on Chinese imports if he is re-elected, he confirmed in an interview with the conservative Sunday Fox Business channel.

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