Yellen’s Diplomatic Endeavors in U.S.-China Relations
U.S. Treasury Secretary Janet Yellen conveyed a message of collaborative engagement during her meeting with Chinese Premier Li Qiang on Sunday, underscoring the progress made in bilateral relations since her previous visit to China. Despite acknowledging significant differences, Yellen emphasized a sense of improved stability in the relationship.
Following two days of discussions primarily focused on trade and economic matters, the meeting with Li shifted towards addressing the broader scope of U.S.-China relations.
This exchange took place in the distinguished Fujian room located within the Great Hall of the People, situated on the western side of Tiananmen Square.
Yellen, esteemed in China, holds the distinction of being the initial Cabinet member to visit following the carefully arranged meeting between Presidents Joe Biden and Xi Jinping in California last November. This gathering was orchestrated with precision to steer the strained relationship between their nations towards a more positive trajectory.
Navigating Turbulent Waters in U.S.-China Relations
In statements to the media prior to their meeting, Li noted the considerable media attention surrounding Yellen’s visit, indicating both the elevated anticipation and the shared aspiration to cultivate and strengthen the U.S.-China relationship.
China’s rise as both an economic and military force has sparked a rivalry with the traditionally dominant United States. The U.S. has imposed limitations on China’s access to advanced semiconductors and other technologies, citing concerns over potential military applications.
In response, China, despite being categorized as a middle-income nation, accuses the U.S. of attempting to hinder its economic progress.
During their meeting, Li conveyed to Yellen China’s desire for the U.S. to refrain from politicizing economic and trade matters or broadening the scope of national security beyond reasonable limits, as reported by the official Xinhua News Agency.
US concerned about China’s trade practices
Yellen prioritized addressing trade practices that disadvantage American companies and workers during her visit to China. Chinese government subsidies and supportive policies have incentivized significant investment in solar panel and electric vehicle (EV) manufacturing facilities, resulting in excess production capacity that surpasses domestic demand.
While the expansion of green energy production in China has led to lower prices for consumers, Western governments express concerns about the potential inundation of their markets with inexpensive exports, posing a threat to jobs in the United States and Europe.
However, Li contended that the advancement of the green energy sector in China would significantly contribute to the global effort to address climate change, as reported by Xinhua.
Following extended meetings spanning two days in the southern city of Guangzhou, U.S. Treasury Secretary Yellen and Chinese Vice Premier He Lifeng agreed on Saturday to engage in “intensive exchanges” aimed at fostering more balanced economic growth, as stated in a U.S. announcement.
Additionally, they agreed to initiate discussions on combating money laundering. Details regarding the timing and location of these talks were not immediately disclosed.
Yellen’s Mission Amidst Complex Relations
Yellen emphasized that as the two largest economies globally, both the United States and China bear a responsibility to effectively manage their intricate relationship while demonstrating leadership and cooperation in tackling urgent global challenges.
During her visit in July, which occurred during the initial stages of efforts to mend relations, the U.S.-China relationship was notably strained.
China had halted discussions on various matters following U.S. House Speaker Nancy Pelosi’s visit to Taiwan in 2022, which had sparked anger. Tensions escalated further with the incident involving a Chinese balloon crossing American airspace in early 2023, subsequently shot down by a U.S. fighter jet.
Against this backdrop, Yellen’s visit aims to build upon a fragile stability that has been achieved.
The conclusion of her trip will coincide with a visit by Russian Foreign Minister Sergey Lavrov on Monday and Tuesday, as announced by China’s Foreign Ministry on Sunday.
Navigating Geopolitical Complexities
China’s significant increase in trade with Russia has been observed since Russia’s invasion of Ukraine in February 2022. While China refrains from providing weapons to Russia, the U.S. has voiced concerns regarding China’s sale of items to Russia with potential military as well as civilian applications.
During a press briefing on Saturday, Yellen addressed the U.S. stance on China concerning Russia.
“We acknowledge that there’s more work to be done, but I view it as an area where we’ve agreed to collaborate, and we’ve already witnessed some significant advancements,” she stated. “They acknowledge the seriousness of this matter for us.”
Yellen also held discussions on Sunday with Beijing Mayor Yin Yong, emphasizing that “local governments play a crucial role in the economy, from stimulating consumption to addressing excessive investment,” and highlighting Beijing’s significance within China.
“I firmly believe that to grasp China’s economic landscape and its future trajectory, engaging with local governments is indispensable,” Yellen remarked. Later in the day, Yellen engaged with students and faculty at Peking University.
