After the phone call between U.S. President Joe Biden and Chinese President Xi Jinping this week for the first time since their in-person meeting in California in November, US Treasury Chief Janet Yellen has kicked off her second visit to China, the first of which was in December 2023.
Since US Treasury Secretary Janet Yellen visited Beijing last year, the world’s two biggest economies have resumed regular talks and averted major escalations in tensions.
Yellen expressed worry about cheap Chinese exports
The itinerary of Yellen incorporates a visit to the southern city of Guangzhou and the capital city of Beijing would include meetings with economists, American businesses, Guangdong governor Wang Weizhong, Beijing Mayor Yin Yong central bank governor Pan Gongsheng and Finance Minister Lan Fo’an.
Today, I spoke with American businesses here in Guangzhou. One of my key priorities has been to establish durable communication channels between the U.S. and China. This week, I will raise issues identified by @AmCham_China to promote policies that benefit American businesses. pic.twitter.com/A3GVdupY7w
— Secretary Janet Yellen (@SecYellen) April 5, 2024
She warns that Washington is wary that cheap Chinese exports could flood global markets, citing green energy sectors like solar and electric vehicles. is working to build its own supply chains in these areas.
Chinese banks have facilitated major new borrowing for the country’s manufacturing sectors, extending it to nearly $700 billion in the third quarter of 2023.
This will enable the establishment of new factories making products from EVs to batteries. There are tensions that Beijing could lean on the global market to absorb production that domestic demand cannot absorb consequently, affecting the United States and Europe.
She also pointed out about the importance of pragmatism and openness by invoking Deng Xiaoping, the late reformist leader who led China away from a planned economy and Maoist ideologies.
On Friday afternoon, Yellen met with Vice Premier He Lifeng, during which she emphasised the importance of a “level-playing field” for companies and workers in both countries.
According to CNN, Yellen is further scheduled to spend four days in Guangzhou and Beijing and is expected to meet Chinese Premier Li Qiang, former Vice Premier Liu He, People’s Bank of China Governor Pan Gongsheng and Finance Minister Lan Fo’an.
US-China relations
Beijing and Washington have clashed in recent years on flashpoint issues ranging from technology and trade to human rights, as well as over the self-ruled island of Taiwan and the South China Sea.
Relations have stabilised somewhat since Biden and his Chinese counterpart Xi Jinping met in San Francisco in November for talks that both sides described as a qualified success.
Additionally, Yellen’s July 2023 visit helped restart dialogue between the two countries.
US Secretary of State Antony Blinken is also expected to make another China trip in the coming weeks, a sign that both sides are returning to more routine engagements.
