Yellen to Visit China: Another Step To Mend Frayed China-US Ties

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Why is Yellen going to China?

US Treasury Secretary Janet Yellen is set to embark on a crucial visit to Beijing from July 6-9. This second high-level trip by a top US official in a matter of weeks.

The visit aims to deepen communication and stabilize the already disturbed relationship between the world's two largest economies.

Yellen's visit follows Secretary of State Antony Blinken's recent trip, which resulted in an agreement with Chinese President Xi Jinping that also aimed at preventing rivalry from turning into conflict.

Here are some key aspects and implications of Yellen's visit, as tensions between the US and China continue to impact their relationship.

Importance of Communication and Cooperation between China and US:

Yellen's visit emphasizes the need for responsible management of the US-China relationship. The direct communication about major bilateral concerns and collaborative efforts to address regional and global challenges.

The US Treasury Department in its statement highlighted the importance of building longer-term channels of communication that aims to foster stronger global economic growth and manage the mounting debt problem of the Global South.

It is evident that both countries recognize the significance of maintaining open lines of dialogue and cooperation.

China-US Focused Areas and Concerns:

During her visit, US Secretary of State is expected to meet senior Chinese officials, leading US firms based in China, and potentially Vice Premier He Lifeng.  

One among the major areas of concern revolves around China's new “national security and espionage law”, which came into force on July 1.

The implications of the said law for foreign and US firms, particularly regarding the broadened scope of espionage activity, will be a topic of discussion.

Yellen's visit aims to address potential spillovers into the investment climate and the broader economic relationship between the two countries.

China-US Tensions:

The relationship between the US and China has deteriorated on various fronts that range from disagreements over the origins of the COVID-19 pandemic to the US concerns about human rights abuses in Xinjiang.

Trade and supply chain issues, as well as conflicting stances on Taiwan, have also contributed to the strained ties.

Additionally, the discovery of an alleged Chinese spy balloon flying over sensitive US areas further escalated tensions between the two Powers.

Despite these challenges, efforts to repair the relationship have been underway.

Long-Term Economic Collaboration:

While the US prioritizes national security interests and the protection of human rights, it also emphasizes that these actions are not intended to gain economic advantages over China.

Yellen's visit aims to build bridges and establish long-term channels of communication.

The US recognizes the importance of collaborating with the world's second-largest economy to:

• Augment global economic growth,
• Address debt challenges, and
• Tackle urgent global issues such as climate change.

Expectations and Potential Breakthroughs:

Yellen's visit is not anticipated to yield significant breakthroughs, but it is expected to be constructive and frank.

The objective is to stabilize the US-China relationship, avoid miscommunication, and expand collaboration where possible.

While Yellen is not scheduled to meet President Xi Jinping, her discussions with senior Chinese officials and US business leaders will focus on areas of concern, responsible competition management, and potential areas for cooperation.

Conclusive View:

As Janet Yellen prepares for her visit to Beijing, the world eagerly awaits the outcome of this important diplomatic engagement.

While significant breakthroughs may not be immediately realized, the visit symbolizes a commitment to open communication, understanding, and cooperation between the China and US.

By addressing concerns, stabilizing ties, and finding common ground, both nations can work towards a more stable and constructive relationship.

This will benefit not only their respective economies but also the global community as a whole.

(Courtesy: Al-Jazeera, Financial Times, CNN)