US, China to talk on economic growth including overcapacity issue: Yellen

The US and China agreed to hold talks that will address a key American complaint about China's economic model, Treasury Secretary Janet Yellen said on the second day of an official visit to China.

The two sides will hold more talks and create two new economic groups dedicated to growth in domestic and global economies as well as anti-money laundering, according to a statement about the creation of the groups.

Yellen, who started her five-day visit in one of China's major industrial and export hubs, has focused thus far on what the U.S. considers to be unfair Chinese trade practices in talks with senior Chinese officials.

In her statement, Yellen said she and her counterparts agreed that the U.S. and China will hold intensive exchanges on balanced growth in the domestic and global economies. These exchanges will facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity, and I intend to use this opportunity to advocate for a level playing field for American workers and firms.

The announcement of the groups come after two days of extended meetings between Yellen and Vice Premier He Lifeng on Friday and Saturday.

Yellen said these exchanges on balanced growth in the domestic and global economies are key to allowing us to deepen our understanding of China's policies and continue to express our concerns, as I have done in my meetings with Vice Premier He.