YELLEN STRESSES ‘CRUCIAL’ NEED TO WORK TOGETHER
US Treasury secretary reiterates importance of communication on areas of concern as she and Vice-Premier He Lifeng begin economic talks
US Treasury Secretary Janet Yellen began two days of talks with Vice-Premier He Lifeng yesterday, stressing that it was “crucial” for Washington and Beijing to work together on global challenges.
The meetings aimed for “frank and substantive conversations” on the bilateral economic relationship, Yellen wrote in a brief post on X, formerly Twitter, following the first round of talks in Guangzhou, Guangdong province.
“It is crucial that the two largest economies in the world seek progress on global challenges and closely communicate on areas of concern,” she said.
In remarks ahead of the talks, Yellen stressed the importance of communication, saying that the three meetings she had with He in less than a year were a “clear representation” of that.
“I believe we have taken up the challenge from our leaders to put the US-China relationship on a more solid footing,” she said, according to the US Treasury Department.
“As I have said, the United States seeks a healthy economic relationship with China that benefits both sides.”
Yellen arrived in Guangzhou on Thursday for the first leg of a week-long trip to China aimed at managing trade relations between the world’s two largest economies.
According to the Treasury Department, Yellen told He that it was key for the United States and China to work on global issues such as climate change and debt distress in emerging markets and developing economies.
The two countries should also closely communicate on issues of concern such as overcapacity and “national security-related economic actions”.
“It is what the world and our citizens expect of us,” she said.
He, one of President Xi Jinping’s top aides, is believed to hold significant influence over the mainland’s financial and economic affairs after being confirmed last year as the office director of a commission to manage China’s economy.
Before their closed-door talks began, China’s new “economic tsar” told Yellen that their main task would be to have “further in-depth discussions on important issues to China, the US, and the global economic and financial fields”, according to state broadcaster CCTV.
The meetings would seek to “provide appropriate responses to some key concerns in China-US economic relations”, he added.
The talks are expected to continue today.
Earlier yesterday, Yellen held a round-table discussion with economists to discuss challenges and opportunities in the Chinese economy. She also similarly stressed the importance of stable economic ties with China at a separate gathering of the US business community.
“The United States will pursue a healthy economic relationship with China. We will seek to cooperate with China on global challenges,” she told an event organised by the American Chamber of Commerce in Guangzhou, the capital of Guangdong province.
But Washington would also “deploy our economic tools when needed and in a narrowly targeted manner to protect our national security and that of our allies”, she said, according to the Treasury Department.
Yellen said she intended to communicate Washington’s commitment to healthy economic relations with Beijing during her visit while also raising concerns over issues like China’s production overcapacity and “unfair economic practices”.
China, she said, had imposed barriers to access for foreign firms and taken “coercive actions against American companies”. “Put simply, the US-China bilateral economic relationship is among the most important in the world. Responsibly managing it is essential,” she said.
Yellen had started her day with a meeting with Guangdong governor Wang Weizhong, where they discussed the industrial outlook for the province, a manufacturing powerhouse, and emphasised that healthy US-China economic ties could bring significant benefits for both.
The second leg of her trip will take Yellen later today to Beijing, where she will meet other high-ranking officials, including Premier Li Qiang, Finance Minister Lan Foan, former vice-premier and economic tsar Liu He and central bank governor Pan Gongsheng.
Yellen, widely seen as one of the most dovish members of the Biden administration, has years of experience in negotiating with Chinese officials.
This is her second visit to China in less than 10 months. Her previous trip last July during high US-China tensions helped to restart dialogue and launch bilateral working groups on economic and financial policy.
This time, her visit comes amid thawing relations as the two world powers seek to ease tensions and strengthen communication.
It also comes days after Xi and his US counterpart Joe Biden held a phone call covering a wide range of issues, including American technology curbs and Chinese trade barriers.
US Secretary of State Antony Blinken is also expected to travel to China “in the coming weeks”, with defence chief Lloyd Austin to “soon” hold talks with his Chinese counterpart Dong Jun, according to the White House.