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The financial health of Social Security and Medicare, two of the nation’s most crucial safety net programs, has improved this year as a stronger-than-expected U.S. economy attracted more workers to the labor market, buttressing funding for the critical programs. Annual reports released on Monday by trustees of the old age and retirement programs showed that while both still face long-term shortfalls that could ultimately result in reduced retirement and medical benefits, lawmakers will have slightly more time before they begin to fray. About 70 million people receive Social Security benefits, and more than 66 million participate in Medicare. The fate of the popular programs continues to be a contentious political issue, one that is expected to intensify as the November presidential election draws near. President Biden has pledged to block any cuts to Social Security and Medicare and has called for shoring up the programs with higher taxes on the rich.
Persons: Biden, Donald J, Trump Organizations: Social Security, Republican, Biden
At a campaign event last month in Pennsylvania, the heartland of American steel manufacturing, President Biden made clear that he does not want the proposed takeover of U.S. Steel by Japan’s Nippon Steel to happen. “We’re finally making sure that United States Steel stays United States Steel,” Mr. Biden said. “It’s not going to be anybody else’s steel.”How that promise will be kept has yet to be determined. U.S. Steel said this week in its first-quarter earnings release that it expected the acquisition to be completed in the second half of this year, but noted that timing depended on getting regulatory approvals. On Friday, Nippon Steel said that it was delaying its timeline for the deal to close, from the middle of the year to the end of 2024, because it had been asked to provide more information about the transaction to the Department of Justice, which is reviewing the deal.
Persons: Biden, “ We’re, Mr, “ It’s Organizations: U.S, Steel, Japan’s Nippon Steel, United States Steel, . Steel, Nippon Steel, Department of Justice Locations: Pennsylvania
The United States and China may be at odds these days over Russia’s war in Ukraine, cheap Chinese exports, tensions with Taiwan and matters of human rights. But when it comes to giant pandas, diplomacy is back. The Ministry of Foreign Affairs in China confirmed this week that two giant pandas — Yun Chuan and Xin Bao — would be sent from the China Conservation and Research Center to the San Diego Zoo. The zoo has a longstanding partnership with China on panda conservation research, and a ministry spokesman said the upcoming exchange would focus on prevention and treatment of major diseases and habitat protection. It is not clear when the new pandas will arrive, but the agreement should allay concerns that the recent tensions between the United States and China would threaten the beloved tradition of panda diplomacy.
Persons: Yun Chuan, Xin Bao —, Lin Jian Organizations: Ministry of Foreign Affairs, China Conservation and Research Center, San Diego Zoo Locations: States, China, Ukraine, Taiwan, U.S, United States
The sanctions represent a broadening of U.S. efforts to disrupt Russia’s military industrial complex supply chain. The Biden administration has expressed growing alarm about the weapons technology alliance between China and Russia. The sanctions follow Ms. Yellen’s trip last month to China, where she confronted Chinese officials over support for Russia. She warned them that Chinese companies and financial institutions that facilitate support for the Kremlin’s war effort would face penalties. The Treasury secretary said her counterparts told her that China had a policy of not providing Russia with military aid.
Persons: Biden, , Janet L, Yellen, Yellen’s Organizations: Wednesday, Top U.S, Russia Locations: Russia, Ukraine, China, United States
The battle lines of the next big tax fight were laid out on Tuesday as Treasury Secretary Janet L. Yellen sparred with Republicans over the Biden administration’s plans to raise taxes on businesses and wealthy Americans. In recent weeks, Republicans have been amplifying their attacks on President Biden’s tax proposals, which have become central to the president’s re-election message. Many provisions in the $1.7 trillion tax cut that Republican lawmakers and former President Donald J. Trump enacted in 2017 are set to expire in 2025, including lower tax rates for individuals as well as many tax breaks for corporations. Renewing all of the tax measures for another decade would cost about $3 trillion, according to the Joint Committee on Taxation. Republicans have begun warning that Mr. Biden plans to allow all of the tax cuts to expire, effectively raising taxes on businesses and families at a moment when inflation is pinching consumers.
Persons: Janet L, sparred, Biden’s, Donald J, Trump, Biden Organizations: Biden, Republican, Taxation, Republicans
A group of seven leading solar manufacturers filed trade complaints on Wednesday formally requesting that the Biden administration impose tariffs on solar products being exported from Southeast Asia into the United States. They come amid growing alarm within the U.S. solar industry that a flood of cheap Chinese green energy technology exports are pushing down prices of solar panels and threatening efforts by the Biden administration to develop a domestic solar supply chain. Chinese companies have been relocating production of solar products to neighboring countries to avoid existing tariffs, and U.S. manufacturers believe new trade measures are needed to protect their businesses. In the past year, the United States has imported $12.5 billion worth of solar products from those countries as prices of solar products have dropped by around 50 percent. The trade complaints are focused on imported solar cells, the parts of solar panels that turn light into electricity.
Persons: Biden Organizations: Department of Commerce, U.S . International Trade Commission Locations: Southeast Asia, United States, U.S, Vietnam, Cambodia, Thailand, Malaysia
Less than a year ago, CubicPV, which manufactures components for solar panels, announced that it had secured more than $100 million in financing to build a $1.4 billion factory in the United States. The company planned to produce silicon wafers, a critical part of the technology that allows solar panels to turn sunlight into electrical energy. But a surge of cheap solar panels from China upended that project. As CubicPV was gearing up to make wafers in the United States, prices of those components were dropping by 70 percent. The setback underscores the concerns rippling across the U.S. solar industry and within the Biden administration about whether President Biden’s industrial policy agenda can succeed.
Persons: CubicPV, Biden Locations: United States, Massachusetts, Texas, China
President Biden’s trillion-dollar effort to invigorate American manufacturing and speed a transition to cleaner energy sources is colliding with a surge of cheap exports from China, threatening to wipe out the investment and jobs that are central to Mr. Biden’s economic agenda. Mr. Biden is weighing new measures to protect nascent industries like electric-vehicle production and solar-panel manufacturing from Chinese competition. On Wednesday in Pittsburgh, the president called for higher tariffs on Chinese steel and aluminum products and announced a new trade investigation into China’s heavily subsidized shipbuilding industry. “I’m not looking for a fight with China,” Mr. Biden said. “I’m looking for competition — and fair competition.”Unions, manufacturing groups and some economists say the administration may need to do much more to restrict Chinese imports if it hopes to ensure that Mr. Biden’s vast industrial initiatives are not swamped by lower-cost Chinese versions of the same emerging technologies.
Persons: Biden’s, Biden, , ” Mr Organizations: Locations: China, Pittsburgh
The tariffs Mr. Biden will propose raising on Wednesday were initially imposed by Mr. Trump when he was president. Mr. Biden’s stop in Pittsburgh is part of a three-day swing through Pennsylvania, a crucial battleground state that he narrowly won in 2020 and has visited more than any other. The president’s campaign is hoping to mobilize support from organized labor, a traditionally Democratic constituency from which Mr. Trump has pulled some support. On Tuesday, Mr. Biden spoke at the local union of the United Brotherhood of Carpenters and Joiners in Scranton, Pa., his hometown. “Donald Trump looks at the world differently than you and me,” Mr. Biden said in a speech that signaled his campaign’s intention to make the 2024 election a referendum on Mr. Trump.
Persons: Biden, Katherine Tai, Mr, ” Lael Brainard, Janet L, Yellen, , Lloyd J, Austin III, Biden’s, Donald J, ” Mr, Trump, “ Donald Trump, ” Alan Rappeport, Michael D, Shear Organizations: United Steelworkers Union, U.S, Economic Council, International Monetary Fund, Trump, CNBC, Mr, Democratic, United Brotherhood of Carpenters Locations: China, Pittsburgh, U.S, Mexico, America, Beijing, United States, Biden’s, Japan, Philippines, South China, Pennsylvania, Joiners, Scranton, Pa, Mar
The global economy is approaching a soft landing after several years of geopolitical and economic turmoil, the International Monetary Fund said on Tuesday. But it warned that risks remain, including stubborn inflation, the threat of escalating global conflicts and rising protectionism. In its latest World Economic Outlook report, the I.M.F. projected global output to hold steady at 3.2 percent in 2024, unchanged from 2023. The forecasts came as policymakers from around the world began arriving in Washington for the spring meetings of the International Monetary Fund and the World Bank.
Organizations: International Monetary Fund, World Bank Locations: Ukraine, Washington
Four days of top-level economic meetings between the United States and China concluded in Beijing on Monday with no major breakthrough, but the world’s two largest economies agreed to hold more discussions to address rising friction over trade, investment and national security. The conversation is poised to become even more difficult, however, as hopes of greater economic cooperation collide with a harsh political reality: It is an election year in the United States, and antipathy toward China is running high. At the same time, Chinese officials appeared unmoved by Treasury Secretary Janet L. Yellen’s urging that China scale back its recent surge of green energy technology exports, which could threaten American jobs. “There is much more work to do,” Ms. Yellen said at a news conference in Beijing on Monday. “And it remains unclear what this relationship will endure in the months and years ahead.”
Persons: Janet L, Ms, Yellen, Locations: United States, China, Beijing
Treasury Secretary Janet L. Yellen confronted her Chinese counterpart about China’s surging exports of inexpensive electric vehicles and other green energy goods, saying that they were a threat to American jobs and urging Beijing to scale back its industrial strategy, the U.S. government has said. Ms. Yellen also warned her counterpart, Vice Premier He Lifeng, that Chinese companies could face “significant consequences” if they provided material support for Russia’s war on Ukraine, according to a Treasury Department summary released on Saturday of two days of talks in the southern city of Guangzhou. The meetings on Friday and Saturday were an effort by the world’s two largest economies to address trade and geopolitical disputes as the countries try to steady a relationship that hit a low last year. The U.S. and China agreed to hold additional talks in the future about curbing international money laundering and fostering “balanced growth.” The latter is aimed partly at addressing concerns that China’s focus on factory production to bolster its sputtering economy has resulted in a glut of exports that is distorting global markets.
Persons: Janet L, Yellen Organizations: Department Locations: Beijing, U.S, Ukraine, Guangzhou, China
After three hours of meetings on Friday, Treasury Secretary Janet L. Yellen and Vice Premier He Lifeng of China sat down for a working dinner at the White Swan Hotel in Guangzhou, China. The evening activity was intended to give the pair, the top economic officials from the United States and China, an opportunity to go beyond talking points and build trust. The message represented a challenging test of economic diplomacy for Ms. Yellen. She wants China to dial back its industrial policy just as the United States is ramping up its own with trillions of dollars of subsidies for domestic clean energy industries. The new push against China’s exports threatens to inflame trade tensions between the world’s largest economies just as they have been working to stabilize relations.
Persons: Janet L, Yellen, Biden Organizations: Hotel Locations: China, Guangzhou, United States
The United States and China created formal economic working groups to keep the conversation going. Months later, Ms. Yellen met with her Chinese counterparts in San Francisco and Morocco. But despite those signs of progress, thorny economic issues continue to divide China and the United States. “We don’t want to decouple our economies,” Ms. Yellen said on Wednesday during a stop in Alaska on her way to China. “We want to continue, and we think we both benefit from trade and investment, but it needs to be on a level playing field.”
Persons: Janet L, Yellen, Biden, Ms Locations: Beijing, United States, China, San Francisco, Morocco, Yunnan, Guangzhou, Alaska
Yellen to Visit China for Top-Level Economic Talks
  + stars: | 2024-04-02 | by ( Alan Rappeport | ) www.nytimes.com   time to read: +1 min
Treasury Secretary Janet L. Yellen will make her second trip to China this week for high-level talks aimed at further stabilizing the relationship between the world’s largest economies as political rancor in the United States intensifies ahead of the presidential election. During four days of meetings in Guangzhou and Beijing, Ms. Yellen plans to meet with representatives from American companies, Chinese students and professors and China’s top economic officials. The trip comes as the Biden administration tries to balance a tougher stance toward China, including restricting access to American technology and retaining tariffs on billions of Chinese exports, while keeping regular lines of communication open and avoiding an economic war. The Treasury Department announced the trip as President Biden and Xi Jinping, China’s leader, held a call on Tuesday on a variety of issues. A senior Treasury Department official who previewed Ms. Yellen’s trip said that it was taking place in the spirit of responsibly managing the economic relationship between the countries.
Persons: Janet L, Yellen, Biden, Xi, Mr, Yellen’s Organizations: Biden, Treasury Department Locations: China, United, Guangzhou, Beijing, United States
The Biden administration is growing increasingly concerned that a glut of heavily subsidized green technology exports from China is distorting global markets and plans to confront Chinese officials about the problem during an upcoming round of economic talks in Beijing. The tension over industrial policy is flaring as the United States invests heavily in production of solar technology and electric vehicle batteries with funding from the Inflation Reduction Act of 2022, while China pumps money into its factory sector to help stimulate its sluggish economy. In a speech on Wednesday afternoon, Treasury Secretary Janet L. Yellen will lay out her plans to raise the issue of overcapacity with her Chinese counterparts. “China’s overcapacity distorts global prices and production patterns and hurts American firms and workers, as well as firms and workers around the world,” Ms. Yellen will say. “Challenges for individual firms can lead to concentrated supply chains, negatively impacting global economic resilience.”
Persons: Biden, Xi, Janet L, Yellen, , Ms Organizations: The New York Times Locations: China, Beijing, United States, Norcross , Ga
The United States imposed sanctions on Chinese hackers on Monday and accused them of working as a front for Beijing’s top spy agency, part of a broad effort to place malware in American electric grids, water systems and other critical infrastructure. The sanctions were a major escalation of what has become an increasingly heated contest between the Biden administration and Beijing. While there have been no cases so far in which the Chinese government has turned off essential services, American intelligence agencies have warned in recent months that the malware appeared to be intended for use if the United States were coming to the aid of Taiwan. By turning off critical services to military bases, and to civilian populations, China would try, according to a series of intelligence findings, to turn Americans inward — worrying about their own supplies of electricity, food and water rather than assisting a distant island that Beijing claims as its own.
Persons: Biden Locations: States, Beijing, United States, Taiwan, China
The World Bank’s internal watchdog on Thursday criticized the organization’s handling and oversight of its investment in a chain of Kenyan schools that were subject to an internal investigation after allegations that students were abused. The investigation, which started in 2020, has consumed World Bank officials and shareholders in recent months and led to scrutiny of its investment arm, the International Finance Corporation, which invested in the educational project a decade ago. While the scandal predates the tenure of Ajay Banga, the World Bank’s new president, it has emerged as one of the first tests of his management. Mr. Banga will be responsible for directing any changes related to how the bank invests in private-sector projects. was interfering in the investigation, and U.S. lawmakers have told him that the bank’s future funding could hinge on his handling of the matter.
Persons: Ajay Banga, Banga Organizations: Bank, International Finance Corporation
In San Francisco, a 20-story office tower that sold for $146 million a decade ago was listed in December for just $80 million. And in Washington, a 12-story building that mixes office and retail space three blocks from the White House that sold for $100 million in 2018 recently went for just $36 million. Such steep discounts have become normal for office space across the United States as the pandemic trends of hybrid and remote work have persisted, hollowing out urban centers that were once bustling with workers. But the losses are hitting more than just commercial real estate investors. Cities are also starting to bear the brunt, as municipal budgets that rely on taxes associated with valuable commercial property are now facing shortfalls and contemplating cutbacks as lower assessments of property values reduce tax bills.
Organizations: House Locations: San Francisco, Chicago, Washington, United States
At the World Bank’s annual meetings last year in Morocco, the organization’s new president, Ajay Banga, outlined a sweeping vision for how he wanted to rid the world of poverty while keeping the planet habitable. The challenge is related to an investment that the World Bank made a decade ago in a chain of schools in Kenya. The educational project was partially funded through the International Finance Corporation, the bank’s investment arm. It became a source of controversy when allegations emerged in 2020 about widespread sexual abuse at the schools, prompting an investigation by the bank’s internal watchdog. has been reviewing a revised “action plan” that could take effect as soon as this week.
Persons: Ajay Banga, Banga Organizations: World Bank, International Finance Corporation Locations: Morocco, Kenya
President Biden in his budget this week staked out major economic battle lines with former President Donald J. Trump, the presumptive Republican presidential nominee. The proposal offers the nation a glimpse of the diverging directions that retirement programs, taxes, trade and energy policy could take depending on the outcome of the November election. During the past three years, Mr. Biden has enacted key pieces of legislation aimed at bolstering the green energy economy, making infrastructure investments and reinforcing America’s domestic supply chain with subsidies for microchips, solar technology and electric vehicles. Few of those priorities are shared by Mr. Trump, who has pledged to cut more taxes and erect new trade barriers if re-elected. Here are some of the most striking differences in the economic policies of the two presidential candidates.
Persons: Biden, Donald J, Trump Organizations: Mr Locations: United States
For Mr. Biden, tax policy has been at the center of his efforts to make the economy more equitable and to counter Republican tax proposals that Democrats deride as giveaways to the wealthy. “Does anybody really think the tax code is fair?” Mr. Biden asked during his address last week. Overall, Mr. Biden is proposing $5 trillion in additional taxes on corporations and high earners over the next decade. Here’s what those increases would entail:Corporate tax increasesThe budget employs a mix of approaches to make American corporations pay more in federal taxes. Mr. Biden also calls for increasing what’s known as the corporate minimum tax to 21 percent from 15 percent.
Persons: Biden, Donald J, Trump, deride, Mr Organizations: Mr, White
Mr. Biden offered a blitz of policies squarely targeting the middle class, including efforts to make housing more affordable for first-time home buyers. The president used his speech to try and differentiate his economic proposals with those supported by Republicans, including former President Donald J. Trump. Those proposals have largely centered on cutting taxes, rolling back the Biden administration’s investments in clean energy and gutting the Internal Revenue Service. Many of Mr. Biden’s policy proposals would require acts of Congress and hinge on Democrats winning control of the House and the Senate. From taxes and housing to inflation and consumer protection, Mr. Biden had his eye on pocketbook issues.
Persons: Biden, Donald J Organizations: Republicans, Trump, Biden, Internal Revenue Service
Divisions among the world’s top economic officials over how to use Russia’s central bank assets to support Ukraine spilled into public view on Wednesday when Bruno LeMaire, France’s finance minister, said that seizing the frozen assets would be a violation of international law. The comments, made on the sidelines of the gathering of finance ministers of the Group of 20 nations in Brazil, came a day after Treasury Secretary Janet L. Yellen said that seizing the assets was a possibility and suggested that there was a legal justification for doing so. Officials from the Group 7 advanced economies have been debating for months over whether they could legally seize more than $300 billion in Russian central bank assets stashed in Western nations and use those funds to aid Ukraine. Those discussions have taken on greater urgency amid waning political support in the United States and Europe to continue to provide Ukraine with economic and military support. Ms. Yellen, who initially had reservations about the viability of freezing or seizing Russia’s assets, offered her most explicit public support to date on Tuesday for the idea of unlocking “the value” of Russia’s immobilized assets.
Persons: Bruno LeMaire, Janet L, Yellen Locations: Ukraine, Brazil, Russian, United States, Europe
Treasury Secretary Janet L. Yellen said on Tuesday that she had personally urged Prime Minister Benjamin Netanyahu of Israel to increase commercial engagement with the West Bank, contending that doing so was important for the economic welfare of both Israelis and Palestinians. Ms. Yellen’s plea was outlined in a letter that she sent to Mr. Netanyahu on Sunday. It represented her most explicit public expression of concern about the economic consequences of the war between Israel and Hamas. In the letter, Ms. Yellen said, she warned about the consequences of the erosion of basic services in the West Bank and called for Israel to reinstate work permits for Palestinians and reduce barriers to commerce within the West Bank. “These actions are vital for the economic well-being of Palestinians and Israelis alike,” Ms. Yellen said at a news conference in Brazil ahead of a gathering of finance ministers from the Group of 20 nations.
Persons: Janet L, Yellen, Benjamin Netanyahu, Israel, Yellen’s, Netanyahu, Ms Organizations: West Bank, Palestinian Authority, United Locations: Israel, Brazil, Gaza, Qatar, United State, Egypt
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