During a roundtable meeting with members of the American business community in Beijing on Friday, U.S. Ambassador to China Nicholas Burns took the floor while Treasury Secretary Janet Yellen listened attentively. Mark Schiefelbein/EPA-EFE captured the moment in a photograph.
July 7 (UPI) — U.S. Treasury Secretary Janet Yellen, who is currently visiting Beijing, emphasized the importance of maintaining a positive economic and financial relationship with China despite their differences. Yellen’s trip aims to improve relations between the two countries amidst tensions related to various issues including Taiwan, human rights, and the South China Sea.
In her prepared comments, Yellen expressed the desire for fair economic competition that benefits both countries in the long run. She acknowledged that there may be instances where the United States needs to prioritize national security, which could create conflicts with China. However, she emphasized the need to avoid misunderstandings and prevent unnecessary deterioration of the bilateral economic and financial relationship.
Yellen noted that she agrees with Chinese Premier Li Qiang’s statement at the World Economic Forum, which highlighted the significance of fostering communication and exchange despite differences. She expressed hope that her visit to China would encourage regular channels of communication between the two countries.
During her visit, Yellen also discussed concerns raised by the United States regarding recent actions taken by China. She specifically mentioned punitive measures against U.S. firms and new export controls on critical minerals used in technologies like semiconductors. While evaluating the impact of these actions, Yellen stressed the importance of building resilient and diversified supply chains for both countries.
The United States and China have experienced escalating tensions in various areas, including economics. The Biden administration has implemented measures to limit China’s involvement in critical infrastructure manufacturing and restrict Beijing’s access to U.S.-made technology, citing national security concerns. Additionally, the administration has focused on boosting domestic semiconductor manufacturing to reduce dependence on China and enhance supply chain diversity.
China has responded to these actions with its own retaliatory measures against U.S. companies. The situation has raised concerns about potential decoupling between the two economies, which could destabilize the global economy.
In her discussions with U.S. business leaders in China, Yellen clarified that the United States is not seeking to fully separate its economy from China. Instead, it aims to diversify its economy while maintaining a stable and constructive relationship. Yellen assured that the actions regarding national security were targeted and intended to protect American workers and businesses.
Treasury Secretary Yellen’s visit to China underscores the importance of open communication, cooperation, and mutually beneficial economic relations between the world’s two largest economies.
