Yellen: US-China relationship on ‘more stable footing’ but more can be done to improve ties

7 Apr at 10:44 am

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U.S. Treasury Secretary Janet Yellen sent a message of mutual cooperation at a meeting Sunday with Chinese Premier Li Qiang, highlighting the improvement in relations since her visit to China last year while recognizing that major differences remain.

Quick Read

Cooperative Message: U.S. Treasury Secretary Janet Yellen emphasized mutual cooperation in a meeting with Chinese Premier Li Qiang, acknowledging improvements in U.S.-China relations since her last visit, while also noting existing differences.
Broadening Discussions: Beyond trade and economic issues, Yellen and Li discussed the broader U.S.-China relationship, aiming for more stable bilateral ties.
Yellen’s Favorable Reception: Yellen, seen positively in China, is the first U.S. Cabinet member to visit following a meeting between Presidents Joe Biden and Xi Jinping aimed at improving relations.
Economic Rivalry: The U.S.-China relationship faces challenges due to China’s rising economic and military power, leading to U.S. restrictions on China’s access to advanced technology.
Trade Practices Concern: Yellen raised concerns about trade practices that disadvantage American companies and workers, particularly in the green energy sector.
Intensive Exchanges Agreement: The U.S. and China agreed to hold detailed discussions on achieving more balanced economic growth and combating money laundering.
Global Leadership Responsibility: Yellen highlighted the responsibility of the U.S. and China, as the world’s two largest economies, to manage their relationship responsibly and lead on global issues.
Visit Context: Yellen’s visit aims to build on the fragile stability in U.S.-China relations, amidst tensions over Taiwan and the Chinese balloon incident.
Overlap with Russian Visit: Yellen’s trip coincides with Russian Foreign Minister Sergey Lavrov’s visit to China, raising concerns about China’s trade with Russia amid the Ukraine conflict.
Local Government Role: Yellen discussed the critical role of local governments in economic matters with Beijing Mayor Yin Yong, emphasizing the importance of understanding China’s economic future.
Engagement at Peking University: Yellen engaged with students and faculty at Peking University, underscoring the need for dialogue with local governments for a comprehensive understanding of China’s economy.

The Associated Press has the story:

Yellen: US-China relationship on ‘more stable footing’ but more can be done to improve ties

Newslooks- BEIJING (AP) —

U.S. Treasury Secretary Janet Yellen meets Chinese Premier Li Qiang, unseen, at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

After focusing on trade and economic issues for the first two days of her visit, Yellen turned to the broader U.S.-China relationship in the meeting with Li, one of China’s top leaders.

“While we have more to do, I believe that, over the past year, we have put our bilateral relationship on more stable footing,” she said in the ornate Fujian room of the Great Hall of the People on the west side of Tiananmen Square.

U.S. Treasury Secretary Janet Yellen, left, shakes hands with Chinese Premier Li Qiang at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

Yellen, who is regarded favorably in China, is the first Cabinet member to visit since Presidents Joe Biden and Xi Jinping met in California in November in a carefully orchestrated meeting to set the troubled relationship between their countries on a better course.

Li, in remarks before the media before their meeting, said the high media interest in Yellen’s visit “shows the high expectation they have … and also the expectation and hope to grow” the U.S.-China relationship.

U.S. Treasury Secretary Janet Yellen, center left, meets Chinese Premier Li Qiang at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

China’s emergence as an economic and military power has created a rivalry with the long dominant United States.

The U.S. has restricted China’s access to advanced semiconductors and other technology, saying it could be used for military purposes. China, still a middle-income country, accuses the U.S. of trying to constrain its economic development.

At their meeting, Li told Yellen that China hopes the U.S won’t politicize economic and trade issues or overstretch the definition of national security, the official Xinhua News Agency said.

Yellen came to China with trade practices that put American companies and workers at an unfair competitive disadvantage at the top of her agenda.

U.S. Treasury Secretary Janet Yellen, left, meets Chinese Premier Li Qiang at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

Chinese government subsidies and other policy support have encouraged solar panel and EV makers in China to invest in factories, building far more production capacity than the domestic market can absorb.

While that has driven down prices for consumers, Western governments fear that that capacity will flood their markets with low-priced exports, threatening American and European jobs.

U.S. Treasury Secretary Janet Yellen, foreground, arrives for a meeting with Chinese Premier Li Qiang, unseen, at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

But Li argued that the development of the green energy industry in China would make an important contribution to combating climate change, the Xinhua report said.

The U.S. and China on Saturday agreed to hold “ intensive exchanges ” on more balanced economic growth, according to a U.S. statement issued after Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in the southern city of Guangzhou.

Chinese Premier Li Qiang, left, waits for the arrival of U.S. Treasury Secretary Janet Yellen, unseen for a meeting at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

They also agreed to start exchanges on combating money laundering. It was not immediately clear when and where the talks would take place.

“As the world’s two largest economies, we have a duty to our own countries and to the world to responsibly manage our complex relationship and to cooperate and show leadership on addressing pressing global challenges,” Yellen said.

Relations were at a low point when she visited in July in the early stages of efforts to improve ties.

China had cut off talks on a range of issues in anger over a visit by then U.S. House Speaker Nancy Pelosi to Taiwan in 2022. Tensions were further inflamed by a Chinese balloon that traversed America in early 2023 before being shot down by a U.S. fighter jet.

In that context, Yellen’s visit is an attempt to build on a fragile stability that has been established.

The end of her trip will overlap with a visit by Russian Foreign Minister Sergey Lavrov on Monday and Tuesday that was announced by China’s Foreign Ministry on Sunday.

U.S. Treasury Secretary Janet Yellen, center, is seated before a meeting with Chinese Premier Li Qiang, right, at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

China’s sharp rise in trade with the Kremlin has increased since Russia’s invasion of Ukraine in February 2022. While China does not provide weapons to Russia, the U.S. has expressed concern about China’s sale of items to Russia that can have military as well as civilian uses.

During a press conference Saturday, Yellen addressed the U.S. relationship with China on the subject of Russia.

U.S. Treasury Secretary Janet Yellen, center, walks near U.S. Ambassador to China Nicholas Burns, third from left, to a meeting with Chinese Premier Li Qiang, unseen, at the Great Hall of the People in Beijing, China, Sunday, April 7, 2024. Yellen, who arrived later in Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the talks would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China. (AP Photo/Tatan Syuflana, Pool)

“We think there’s more to do, but I do see it as an area where we’ve agreed to cooperate and we’ve already seen some meaningful progress,” she said. “They understand how serious an issue this is to us.”

Yellen also met Sunday with Beijing Mayor Yin Yong and told him that “local governments play a critical (economic) role, from boosting consumption to addressing overinvestment,” adding that Beijing is particularly important in China.