Yellen says US-China relations 'more stable', but more can be done to improve relations

BEIJING US Treasury Secretary Janet Yellen sent a message of mutual cooperation during a meeting with Chinese Premier Li Qiang on Sunday, highlighting improved relations since her visit to China last year, while acknowledging that major differences remain.

After focusing on trade and economic issues during the first two days of her visit, Yellen turned to broader U.S.-China relations during her meeting with Li, a key Chinese leaders.

Although we still have a long way to go, I believe that over the past year, we have placed our bilateral relations on a more stable footing, she said at the ornate Fujian Hall of the Great Hall of the People, on the west side of Tiananmen Square.

Yellen, who enjoys a good reputation in China, is the first Cabinet member to visit since Presidents Biden and Xi Jinping met in California in November in a carefully orchestrated meeting to put strained relations to rest. between their countries on a better path.

Li, in his remarks to the media before their meeting, said the media's high interest in Yellen's visit shows the high expectations they have as well as the expectation and hope of developing U.S.- United and China.

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

The United States has restricted China's access to advanced semiconductors and other technologies, saying they could be used for military purposes. China, still a middle-income country, accuses the United States of trying to slow down its economic development.

During their meeting, Li told Yellen that China hoped the United States would not politicize economic and trade issues or expand the definition of national security, the official Xinhua news agency said.

Yellen arrived in China with trade practices that put American businesses and workers at an unfair competitive disadvantage at the top of her agenda.

Subsidies from the Chinese government and other policy support have encouraged solar panel and electric vehicle makers in China to invest in factories, building production capacity far beyond what the domestic market can absorb.

Although this has lowered prices for consumers, Western governments fear this capacity could flood their markets with low-cost exports, threatening American and European jobs.

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

The United States and China agreed Saturday to have intensive discussions on more balanced economic growth, according to a U.S. statement released after Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in the southern city of Guangzhou.

They also agreed to begin discussions on the fight against money laundering. It was not immediately clear when or 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 relationships and to cooperate and demonstrate leadership to address pressing global challenges, Yellen said.

Relations were at an all-time low during his visit in July, at the start of efforts to improve ties.

China had halted negotiations over a series of angry issues following then-Speaker of the United States House of Representatives Nancy Pelosi's visit to Taiwan in 2022. Tensions were further heightened by a Chinese balloon that crossed America in early 2023 before being shot down by an American fighter. jet.

In this context, Yellens' visit is an attempt to build on a fragile stability that has been established.

The end of his trip will coincide with the visit of Russian Foreign Minister Sergei Lavrov on Monday and Tuesday, announced on Sunday by the Chinese Foreign Ministry.

The sharp increase in trade between China and the Kremlin has intensified since Russia's invasion of Ukraine in February 2022. Although China does not supply weapons to Russia, the United States has expressed concern about China's sale of items that could have military and civilian uses.

At a press conference on Saturday, Yellen addressed U.S.-China relations over Russia.

“We think there is still a lot to do, but I see this as an area where we have agreed to cooperate and where we have already seen significant progress,” she said. . They understand how serious this problem is for us.

Yellen also met with Beijing Mayor Yin Yong on Sunday and told him that local governments play a vital (economic) role, whether it's boosting consumption or fighting overinvestment, adding that Beijing is particularly important in China.

I believe that to understand China's economy and its economic future, engagement with local governments is essential, Yellen said.

Later Sunday, Yellen met with students and faculty at Peking University.

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