by US Treasury Secretary Janet Yellen said the 10 hours of meetings with Chinese officials over two days were “direct, substantive and productive” and a step forward in helping build relations between the two largest economies. of the world on a “more secure basis”.
Yellen’s trip to Beijing comes at a time when Washington is considering restrictions on US investment in China in the midst of a growing global battle for technological supremacy. He is the second member of US President Joe Biden’s cabinet to visit Beijing in recent weeks amid efforts to stabilize ties between the two powers.
“The United States and China have major disagreements. Those disagreements need to be communicated clearly and directly,” Yellen said in prepared remarks. “But President [Joe] Biden and I do not see the relationship between the United States and China in the context of a great power conflict.
“We believe that the world is big enough for our two countries to prosper. Both nations have an obligation to responsibly manage this relationship – to find a way to live together and share global prosperity,” she added.
In comments on a Press conference Capping off her four-day visit to Beijing, Yellen said she told her Chinese counterparts that any restrictions on US investment abroad would be “transparent” and “very targeted.”
Otherwise, he added, Chinese officials can raise their concerns and the US will, in some cases, address the unintended consequences.
“Overall, I think my bilateral meetings, which totaled about 10 hours over two days, served as a step forward in our effort to put the US-China relationship on a more secure footing,” Yellen concluded.
Just days before Yellen’s visit, Beijing imposed restrictions on exports metals for making chips and its compounds— that the Ministry of Commerce of China claimed to have given the US and Europe notice. In October, the US launched general rules addressed to cut exports of key chips and semiconductor tools to China.
Diversify, don’t decouple
Yellen said she had “made it clear that the United States is not seeking to disengage from China” in her talks with Chinese Premier Li Qiang, Vice Premier He Lifeng and other senior officials.
“There is an important distinction between decoupling, on the one hand, and, on the other hand, diversifying critical supply chains or taking specific national security measures,” he said.
“We know that a decoupling of the world’s two largest economies would be disastrous for both countries and destabilizing for the world,” he added. “And it would be virtually impossible to undertake.”
China’s vice premier said Saturday’s talks with Yellen were “constructive.” according to a Chinese government reading.
“Noting that the overload of national security does not benefit normal economic and trade exchanges, the Chinese side expressed concern about the sanctions and restrictions imposed by the United States on China,” the same statement said.
“The two sides agreed to strengthen communication and cooperation to address global challenges and continue to maintain exchanges and interactions,” the statement added.
tricky balance
Yellen’s task in Beijing was difficult. While he expressed concern about “a recent increase in enforcement actions against US companies,” he also sought Chinese cooperation on issues ranging from debt problems in emerging markets and developing countries to climate change.
These are principles he laid out in an April speech in which he stressed the importance of equity in the US economic competition with China.
So, she had sketched three economic priorities for the US-China relationship: ensuring national security interests and protecting human rights, fostering mutually beneficial growth, and cooperating on global challenges like climate change and the debt overhang.
“I think if China supported existing multilateral climate institutions like the Green Climate Fund and Climate Investment Funds together with us and other donor governments, we could have a bigger impact than we have today,” Yellen saying ahead of a roundtable on climate finance on Friday in Beijing.
Yellen’s visit is part of ongoing efforts to stabilize US-China relations after months of escalating tensions. His visit came just weeks after Secretary of State Antony Blinken’s visit last month.
“My goal during this trip has been to establish and deepen relationships with the new economic leadership team in Beijing. Our discussions are part of a larger concerted effort to stabilize the relationship, reduce the risk of misunderstandings and discuss areas of cooperation,” Yellen said Saturday.
These efforts could pave the way for a meeting between Biden and Chinese President Xi Jinping on the sidelines of the G20 leaders’ summit in New Delhi in September and the APEC leaders’ summit in San Francisco in November. The two leaders last met in Bali last year.
“No visit will solve our challenges overnight,” Yellen said. “But I hope this trip helps build a resilient and productive communication channel with China’s new economic team.”
