The United States and China have agreed to hold intensive exchanges on balanced economic growth amid concerns about China's industrial overcapacity in the electric vehicle and other sectors.

The agreement came during a two-day meeting between US Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng, held on Friday and Saturday in the southern Chinese city of Guangzhou.

The US Treasury Department issued a statement on Saturday, quoting Yellen as saying that the two sides agreed to hold intensive exchanges on balanced growth in the domestic and global economies.

Yellen said, "These exchanges will facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity."

She added, "I am particularly concerned about the impact of Chinese industrial overcapacity in certain sectors as a result of government support, and the impact it could have on the American economy."

Yellen explained, "I firmly believe a shift away from policies that drive overcapacity would benefit the American, Chinese, and global economies."

China's state-run Xinhua news agency reported that, "The Chinese side expressed grave concern over US economic and trade measures restricting China and responded fully to the issue of production capacity."

The US and China have been at odds with each other over China's policy to grant subsidies to EV manufacturers and the US export restrictions on semiconductors. Attention is focused on whether the two sides can find common ground in future talks.