Yellen’s Visit to China Amid Tensions

During her visit to China, Treasury Secretary Janet Yellen emphasized the importance of economic cooperation between the United States and China. Yellen met with Premier Li Qiang and stressed the need for open communication channels, especially in the current climate of strained relations. These relations have been affected by disputes over technology, security, and other issues. Yellen is part of a delegation of senior US officials seeking to restore interactions between the governments of the two largest economies. While no breakthroughs were expected and a meeting with Chinese leader Xi Jinping was not scheduled, Yellen’s visit aims to encourage dialogue and collaboration.

Yellen defended the US government’s measures to restrict Chinese access to advanced processor chips and other technology, stating that these actions are necessary for national security protection. However, she emphasized the importance of preventing misunderstandings and avoiding unnecessary damage to economic and financial relationships. Yellen highlighted the need for fair competition and the establishment of mutually beneficial rules for both countries. Additionally, she emphasized that the US and China have a responsibility to cooperate in addressing global challenges.

Premier Li expressed optimism about improving conditions but did not indicate any potential changes in Chinese policies that have caused tension with the US and its trading partners. Symbolizing hope for better relations, Li referred to a rainbow seen after Yellen’s plane landed in rainy weather. The Chinese finance ministry described Yellen’s visit as a concrete step towards fulfilling the agreement between Xi and President Biden to improve relations. While the ministry did not mention specific initiatives, it called on the US to take the first move and create a positive environment for the development of economic and trade relations.