U.S. Treasury Secretary Janet Yellen met with Chinese Premier Li Qiang on Sunday, emphasizing the importance of mutual cooperation and acknowledging the progress made in bilateral relations since her previous visit to China. Despite this positive development, Yellen also acknowledged that significant differences between the two countries still exist.
During her visit, Yellen initially prioritized discussions on trade and economic matters. However, in her meeting with Li, one of China’s prominent leaders, she shifted her attention towards the broader U.S.-China relationship.
In the elegant Fujian room of the Great Hall of the People on the west side of Tiananmen Square, she expressed her belief that our bilateral relationship has been put on a more stable footing over the past year.
Janet Yellen, who is highly regarded in China, becomes the first Cabinet member to visit the country since Presidents Joe Biden and Xi Jinping had their meeting in California in November. The meeting was strategically planned to improve the strained relationship between the two nations.
Li, speaking to the media prior to their meeting, expressed his appreciation for the significant media attention surrounding Yellen’s visit. He acknowledged the high expectations placed on the U.S.-China relationship and expressed hope for its growth.
China has emerged as a formidable economic and military power, sparking a rivalry with its long-standing dominant counterpart, the United States.
The United States has imposed limitations on China’s ability to obtain advanced semiconductors and other technological advancements, citing concerns over potential military applications. In response, China, which is still considered a middle-income nation, accuses the United States of attempting to hinder its economic progress.
During their meeting, Li emphasized to Yellen that China desires for the United States to refrain from politicizing economic and trade matters or expanding the boundaries of national security, as reported by the official Xinhua News Agency.
Yellen arrived in China with a primary focus on addressing trade practices that have placed American companies and workers at an unfair competitive disadvantage.
Chinese solar panel and electric vehicle (EV) manufacturers have been incentivized by government subsidies and policy support, resulting in an oversupply of production capacity that surpasses the domestic market demand.
Western governments are concerned that the increased production capacity in other countries will lead to a flood of low-priced exports in their markets, potentially jeopardizing jobs in America and Europe. Despite the benefit of lower prices for consumers, this potential threat has raised concerns among Western governments.
According to the Xinhua report, Li stated that the growth of China’s green energy sector would play a significant role in addressing the challenges of climate change.
The United States and China have reached an agreement to engage in intensive exchanges to promote more balanced economic growth. This decision was made after U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in Guangzhou. The focus of these discussions was on finding ways to ensure a more equitable economic landscape between the two countries.
The participants also reached an agreement to initiate discussions on the topic of combatting money laundering. The specific details regarding the timing and location of these talks have yet to be confirmed.
Janet Yellen emphasized the importance of the United States and China, as the two largest economies, taking responsibility for managing their complex relationship. She stated that it is their duty to not only prioritize their own countries but also to demonstrate leadership in addressing urgent global issues.
When she visited in July, relations were at a low point during the initial stages of efforts to improve ties.
China severed communication on various matters after expressing their outrage over a visit to Taiwan by former U.S. House Speaker Nancy Pelosi in 2022. The situation escalated when a Chinese balloon crossed into American airspace in early 2023, prompting a U.S. fighter jet to shoot it down.
Yellen’s visit aims to strengthen the delicate stability that has already been achieved.
Russian Foreign Minister Sergey Lavrov is set to visit China on Monday and Tuesday, coinciding with the end of her trip. This visit was announced by China’s Foreign Ministry on Sunday.
China’s trade with Russia has seen a significant increase following Russia’s invasion of Ukraine in February 2022. Although China does not directly supply weapons to Russia, there are concerns raised by the United States regarding China’s sale of goods to Russia that possess both military and civilian applications.
During a press conference on Saturday, Yellen discussed the United States’ relationship with China regarding Russia.
“We believe there is still work to be done, but we are encouraged by the progress we have made in this area,” she expressed. “We have reached an agreement to collaborate and have already witnessed significant advancements. They comprehend the gravity of this matter to us.”
During her visit, Yellen also had a meeting with Beijing Mayor Yin Yong, where she emphasized the crucial role that local governments play in the economy. She highlighted their significance in areas such as stimulating consumption and addressing overinvestment. Yellen specifically acknowledged the importance of Beijing within China’s economic landscape.
According to Yellen, it is crucial to engage with local government in order to comprehend China’s economy and its future prospects.
On Sunday, Yellen had the opportunity to engage with students and faculty at Peking University.
