Starting Thursday, US Treasury Secretary Janet Yellen will visit Chinese Vice Premier He Lifeng to discuss the bilateral relationship and other global issues.
During a meeting held at the Diaoyutai State Guesthouse in Beijing, United States Secretary of the Treasury Janet Yellen (left) shook hands with Chinese Vice Premier He Lifeng. (Source: CNN Business)
US Treasury Secretary to Meet US and China Presidents
Yellen’s sessions with China’s new economic czar will prepare for the high-stakes meeting between US President Joe Biden and Chinese President Xi Jinping next week at the Asia-Pacific Economic Cooperation gathering in San Francisco. The 21 Pacific Rim economies’ top government and corporate leaders meet in the US this year for the annual conference. After early-year hostilities, US-China relations have improved. US and Chinese authorities want to improve economic and diplomatic relations. That’s amid a weak global economy and geopolitical tensions elsewhere.
Yellen last encountered He in Beijing in July, the second US cabinet official visit in two weeks to repair relations. Since August, Secretary of State Antony Blinken, climate envoy John Kerry, and Commerce Secretary Gina Raimondo have visited Beijing. Wang Yi, China’s senior diplomat, is also in Washington. The flurry of diplomatic activity appears to have stabilized relations between the two sides, which had been at odds over a variety of issues, including US investments in advanced technology in China and newly expanded semiconductor sales restrictions. According to Mattie Bekink, director of the Economist Intelligence Corporate Network Shanghai, neither Biden nor Xi want things to deteriorate further; rather, she believes both sides recognize that, in this challenging and volatile global environment, improved stability in US-China relations benefits both nations and the world.
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Alignment of Global Issues
In contrast, there seems to be more openness about where and why issues exist while seeking alignment or at least a framework for involvement – trade, investment, climate change.” Yellen stated earlier this year that the US will prioritize national security and human rights, promote a healthy and fair economic relationship with China, and work with China to solve global concerns. Yellen emphasized last week in Washington that the US does not intend to decouple from China, but rather to guarantee that the country’s economic security is not reliant on a single country for many vital inputs. It is widely acknowledged that the US-China relationship is one of the most important in the world, and they must do it right for Americans and people all across the world. Separation of the economy or compelling countries, particularly those in the Indo-Pacific, to choose sides would have enormous global ramifications. They do not want a divided globe because it will lead to disasters authorities are trying to repair their relationship with China by maintaining a firm on national security and human rights without undermining China’s economic prospects.
The Treasury Department must implement the Biden administration’s August executive order, which restricts US investment in China’s AI, quantum computing, and semiconductor businesses, next year. The limitations were meant to prevent US capital from supporting China’s military, not undermine its economy, according to US officials. CNN reported that US investors called the rules a “major blow” to the venture capital business. China has been using stimulus measures to recover from a profound economic slump caused by high youth unemployment and a weak real estate market. Beijing’s property sector support initiatives have raised the IMF’s economic growth projection for China.
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