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China and US Aim to Maintain Economic Ties Amid Disputes: Yellen Visit Details

The United States and China are not seeking to weaken their economic ties despite ongoing disputes, according to US Treasury Secretary Janet Yellen and her Chinese counterpart.

Janet Yellen held a series of meetings with leaders in Beijing during her four-day visit to the Chinese capital.

The purpose of the trip was to repair the fractured US-Chinese relations, which have majorly disturbed due to disputes over security, technology, and increased regional as well as global competition.

The overview of the visit is given as under:

Efforts to Prevent Complete Separation of Economies

During the visit, Yellen has emphasized that the United States does not seek a wholesale separation of the economies.

Because separation would be destabilizing for the global economy and would be virtually impossible to undertake.

She expressed the need for cooperation and stressed concerns over Beijing's treatment of US companies operating in China.

In addition to this, she also defended US policies aimed at limiting China's access to critical technologies.

Calls for Concrete Actions and Favourable Environment

The Chinese finance ministry referred to Yellen's visit as a "concrete measure" to advance the November agreement between US President Joe Biden and Chinese President Xi Jinping to improve relations.

However, the ministry called on Washington to make the first move and take concrete actions to create a favorable environment for the healthy development of economic and trade relations.

It emphasized that trade wars or decoupling would have no winners and expressed hope for cooperation.

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Optimism for Improved China-US Relations

During Yellen's meeting with Chinese Premier Li Qiang, an optimistic tone was seen regarding the possibility of improving relations.

Li referred to a rainbow that appeared after Yellen's plane landed, stating that after a round of wind and rain, more rainbows would be seen.

However, while both countries expressed their willingness to improve relations, they offered little in terms of tangible steps to resolve ongoing disputes.

Defending Targeted Actions and Concerns Raised

Yellen defended the targeted actions taken by the US, which include curbs on Chinese access to advanced processor chips and other technology.

She stated that such measures are solely done in the name of national security and not to stifle Chinese advancement.

Yellen addressed concerns raised by US companies regarding Beijing's use of subsidies and market barriers to protect Chinese companies.

She also emphasized the need for healthy economic competition and a fair set of rules that benefit both countries.

Record Trade and More Visits Planned

Recent data showed that the US-China trade relationship remains fundamentally solid, with two-way trade hitting a record $690 billion last year.

Yellen's visit is the latest attempt by the United States to repair ties with China.

Secretary of State Antony Blinken visited Beijing last month, and climate envoy John Kerry is scheduled to visit China soon.

These diplomatic efforts come ahead of a possible meeting between President Biden and President Xi Jinping, potentially in September or November.

Direct and Productive Talks with Chinese Officials

Yellen described her talks with top Chinese officials as direct and productive, which helped put the US-China relationship on a surer footing.

While acknowledging significant disagreements, Yellen expressed confidence that the meetings, totaling about 10 hours, advanced Washington's efforts to stabilize relations between the two economies.

She emphasized that the United States and China believe that there is enough room in the world for both countries to thrive and that they do not see the relationship through the lens of great power conflict.

Challenges and Cooperation Ahead

Yellen's visit aimed to establish and deepen ties with China's new economic team, reduce the risk of misunderstanding, and pave the way for cooperation on issues like climate change and debt distress.

Although no specific breakthroughs were made, Yellen highlighted the importance of increased and regular communication at the staff level.

She assured Chinese officials that any measures restricting outbound investment would be narrow in scope and transparent, driven by national security considerations rather than economic advantage.

Addressing Concerns and Seeking Fair Economic Competition

Yellen reiterated that the United States is not seeking to decouple from China's economy, emphasizing that it would be disastrous for both countries and destabilizing for the world as well.

Instead, the US aims for an open, free, and fair economy that does not force countries to take sides.

Yellen raised concerns over unfair trade practices by Beijing, including barriers to foreign firms entering the Chinese market and issues related to the protection of intellectual property.

She also expressed worries about coercive actions against American firms and highlighted the importance of healthy economic competition benefiting both sides.

Analysts' Perspectives and Future Outlook

Analysts in China noted that Beijing appeared more enthusiastic about Yellen's visit compared to Blinken's trip, as she is considered more rational and professional.

While both sides downplayed expectations for major breakthroughs, the opportunity for face-to-face diplomacy was hailed.

The success of Yellen's visit will be measured by the deepening of communication, paving the way for future conversations, and meeting China's new economic team.

Major announcements and concrete key breakthroughs are likely to be reserved for potential meetings between the top leaders of both countries.

(Courtesy: Al-Jazeera)