Beijing, 7 July 2023 (TDI): U.S. Treasury Secretary Janet Yellen embarked on a significant four-day visit to China aimed at easing tensions between the world’s two largest economies.
Despite low expectations on both sides, Yellen expressed her commitment to advancing President Joe Biden’s goal of fostering communication between the economically intertwined but increasingly adversarial countries.
She emphasized the desire for healthy economic competition that benefits American workers and firms while collaborating on global challenges. Yellen’s visit also aimed to prevent miscommunication or misunderstanding, stressing the importance of dialogue, even when disagreements exist.
Upon her arrival in Beijing, Yellen received welcome from a Chinese finance ministry official and the U.S. envoy to China, Nicholas Burns. While both sides acknowledged the limited potential of Yellen’s visit to alleviate U.S.-China tensions, they recognized that safeguarding national security interests had taken precedence over deepening economic ties.
During her visit, Yellen planned to address what the Biden administration views as unfair practices by China, including recent actions against U.S. companies and barriers to market access.
Her itinerary includes meetings with China’s Premier Li Qiang and former economy tsar Liu He,also the former vice premier 2018-2023, who enjoys a close relationship with President Xi Jinping.
Chinese commentators highlighted the perceived hypocrisy in U.S. concerns over China’s trade practices, urging the United States to address China’s main economic and trade concerns. Trade tariffs imposed by the Trump administration and sanctions against Chinese firms remained prominent issues for Beijing.
Yellen’s visit followed Secretary of State Antony Blinken’s recent trip, during which he and President Xi Jinping agreed to prevent the mutual rivalry from escalating into conflict.
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The visits by Yellen, Blinken, and Biden’s climate envoy John Kerry aimed to improve strained relations after a U.S. military action involving a Chinese government balloon.
These diplomatic efforts preceded a potential meeting between President Biden and President Xi, expected to take place either at the Group of 20 (G20) Summit in New Delhi in September or the Asia-Pacific Economic Cooperation (APEC) gathering in San Francisco scheduled for November. The engagements reflect a concerted push to thaw tensions and create opportunities for constructive dialogue between the two nations.
