BEIJING: Janet Yellen, the US Treasury Secretary, reached Beijing for a visit aimed at improving communication and stabilizing the tense relationship between the United States and China. This marks her first visit to China as treasury secretary.
During her trip, Janet Yellen seeks to expand lines of communication and prevent miscommunications. She also seeks to enhance collaboration on various global issues such as the economy, climate change, and debt distress. The visit also provides an opportunity for officials from both countries to discuss their respective growth outlooks.
Yellen’s four-day visit demonstrates the significance she places on this engagement amidst her other domestic and international responsibilities. The trip serves as part of the United States’ broader efforts to recalibrate its relationship with China in diplomatic and other areas, focusing on managing strategic competition.
While both sides may have concerns to raise, Yellen’s visit can lay the groundwork for future collaboration. It also allows for explanations and communications regarding measures such as technology export controls and competitive actions.
However, challenges remain, as the US administration reportedly considers restricting Chinese companies’ access to US cloud-computing services. Ahead of the visit, Beijing has taken reciprocal actions, including new export controls on metals relevant to semiconductor manufacturing, indicating that a shift in relations may take time.
They have not announced the specific details of Yellen’s talks, but observers are eager to see if she will meet with Chinese Vice Premier He Lifeng, who succeeded top economic official Liu He. Economic issues, including potential restrictions on certain outbound investments involving sensitive technology, remain sources of tension.
During the visit, the US intends to push for corrective actions regarding Beijing’s coercive actions and non-market economic practices.
The United States aims to “de-risk” the relationship with China and clarifies that it is not seeking decoupling. It still remains uncertain whether Beijing will be convinced of a shift in US policy.
However, there are areas such as debt distress where cooperation appears more likely, providing potential opportunities for engagement.
