U.S. Treasury Secretary Janet Yellen recently met with Chinese Vice Premier He Lifeng in San Francisco to discuss economic issues and enhance communication. During a press conference after their two-day meeting, Yellen highlighted the need for candid and direct discussions on topics such as U.S. export controls and climate change, emphasizing the importance of maintaining resilient lines of communication.
Yellen expressed concern about Chinese companies providing material support to Russia for its war in Ukraine, urging China to crack down on such activities. The two leaders also discussed the Israel-Hamas conflict and Treasury debt market, with Yellen acknowledging that China may reduce its holdings of U.S. Treasury debt to support its currency.
Following nearly five years of strained relations between the U.S. and China, Yellen and He’s meetings aimed to establish a more constructive economic relationship. While no specific actions were agreed upon, both sides committed to working toward common solutions and a level playing field for companies and workers in both countries.
The meetings also focused on strengthening the global financial architecture, including plans to increase the voice of under-represented members/regions, with an emphasis on China’s bigger shareholding in the International Monetary Fund.
Overall, the discussions were described as productive, marking an important step in improving economic cooperation between the U.S. and China.
