China aims to cut steel glut, avoid race to devalue yuan: US

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Updated: June 7, 2016 3:00:30 PM

Jack Lew said today that China had agreed to try to wind down unprofitable "zombie enterprises" and to push ahead with reforms to make its economy more balanced.

yuanThe US agenda included pressing Beijing to move faster in shrinking bloated industries including steel, which its trading partners complain is flooding their markets with unfairly cheap exports. (Reuters)

US Treasury Secretary Jacob Lew says China has agreed to try to slash excess output of steel and to avoid competitive devaluations of its currency in high-level talks in Beijing.

Lew said today that China had agreed to try to wind down unprofitable “zombie enterprises” and to push ahead with reforms to make its economy more balanced.

The two-day annual meeting of Cabinet-level foreign affairs, trade and other officials from both sides is meant to head off conflict.

The US agenda included pressing Beijing to move faster in shrinking bloated industries including steel, which its trading partners complain is flooding their markets with unfairly cheap exports.

The annual Strategic & Economic Dialogue rarely produces agreements on major issues, but allows officials to air disputes, clear up misunderstandings and share experiences.

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