CHINA. Beijing: Janet Yellen, the U.S. Treasury Secretary, said that the ten hours of bilateral meetings with senior Chinese officials were “direct” and “productive,” helpful in stabilising the often turbulent relationship as her four-day trip to Beijing concluded.
Prior to leaving China on Sunday, Yellen stated that although the US and China continue to disagree on a number of issues, she was confident that her visit had advanced efforts to put the relationship on “surer footing.”
At a news conference held at the American embassy in Beijing, Yellen stated that “the U.S. and China have significant disagreements,” highlighting Washington’s worries about what she called “unfair economic practises” and recent sanctions on American businesses.
“But President (Joe) Biden and I do not see the relationship between the U.S. and China through the frame of great power conflict. We believe that the world is big enough for both of our countries to thrive,” she added.
Amidst strained relations between the United States and China, primarily concerning national security matters such as Taiwan, export restrictions on advanced technologies, and China’s state-driven industrial policies, efforts are being made by Washington to mend ties between the two largest global economies.
Last month, Secretary of State Antony Blinken embarked on a historic visit to Beijing, marking the first official trip by the highest-ranking U.S. diplomat during President Biden’s tenure. Additionally, climate envoy John Kerry is anticipated to undertake a visit to China later this month.
The U.S. diplomatic drive comes before a potential meeting between Vice President Biden and President Xi Jinping at the Group of 20 summit in September in New Delhi or an APEC summit set for November in San Francisco.
Yellen stated that the goals of her visit were to forge closer ties with China’s new economic leadership, lessen the possibility of miscommunication, and open the door to future collaboration on issues like climate change and the debt crisis.
“I do think we’ve made some progress, and I think we can have a healthy economic relationship that benefits both of us and the world,” she stated, adding that she anticipated more frequent and enhanced staff communication.
She said that Chinese officials expressed anxiety regarding an upcoming executive order that would limit foreign investment, but she reassured them that any such step would be limited in scope and implemented in a transparent manner through a rule-making process that would allow for public input.
Yellen stated that she informed Chinese officials that they may voice their worries about American policies so that Washington could reply and, “possibly in some situations, explain the unintended consequences of our actions if they’re not carefully targeted.”
Yellen held meetings with various officials, including Premier Li Qiang and People’s Bank of China Deputy Governor Pan Gongsheng. During the meetings, Yellen acknowledged Pan Gongsheng’s role as the head of the central bank, confirming his expected promotion.
Additionally, Yellen engaged with U.S. companies operating in China, climate finance experts, and women economists.
Throughout her discussions with officials, Yellen emphasised the importance of increased cooperation between the two sides on economic and climate-related issues. She expressed concerns about the negative impact of “punitive actions” taken against U.S. companies operating in China.
Furthermore, Yellen reiterated that the United States was not pursuing a complete decoupling from China’s economy, as doing so would be “disastrous for both countries and destabilising for the world.”
The U.S. has put export restrictions in place to prevent China from acquiring sophisticated microchips that they suspect may be used for military purposes, and it is also considering taking action to limit U.S. investment in sensitive regions.
However, some US senators urge more drastic measures. A bipartisan group has suggested granting the government broad authority to obstruct billions of dollars in American investment in China.
Yellen stated that in order to avoid unwarranted consequences, she had made it plain to her Chinese counterparts that any investment restrictions would be “highly targeted and clearly directed, narrowly at a few sectors where we have specific national security concerns.”
Yellen said that she anticipated the dollar to continue to be the leading currency in international trade when questioned about the BRICS nations’ aspirations to establish a unified trading currency.
Yellen stated that she anticipated the dollar to continue to be the leading currency in international trade when questioned about the BRICS nations’ aspirations to establish a unified trading currency.
She told her Chinese counterparts that it was “essential” that Chinese companies refrain from giving Moscow material support for the conflict or assistance in avoiding sanctions in regards to Russia’s conflict in Ukraine.
Both parties had downplayed hopes for significant progress during the negotiations while appreciating the chance for face-to-face diplomacy.
“No one visit will solve our challenges overnight. But I expect that this trip will help build a resilient and productive channel of communication,” Yellen continued.
Also Read: Heatwave Grips China: Beijing Faces 3rd Consecutive Day of Intense Heat
