Washington has warned Beijing that the US and its allies will take action if China tries to ease its industrial overcapacity problem by dumping goods on international markets, according to American officials.

Two senior Treasury officials told the Financial Times that a US delegation made its concerns clear in a recent visit to China, including in conversations with He Lifeng, the vice-premier responsible for China’s economy.

“We are worried that Chinese industrial support policies and macro policies that are more focused on supply rather than thinking about where the demand will come from are both careening towards a situation where overcapacity in China?.?.?.?is going to wind up hitting world markets,” said Jay Shambaugh, the under-secretary for international affairs, who recently led an economic team to Beijing.