U.S. Treasury Secretary Janet Yellen met top economic leaders in China during her four-day visit which ended today, but did not meet with President Xi Jinping. While she maintained her position that she and the Biden Administration want to improve relations, she insisted that the U.S. will take steps to “defend national security.” At the same time she underlined the importance of the overall relationship and of maintaining high-level personal contacts between officials of both countries. Yellen met with all the members of the new Chinese economic team, with Premier Li Qiang, Vice Premier He Lifeng, Finance Minister Liu Kun, and People’s Bank of China’s Deputy Governor Pan Gongsheng, discussing U.S.-China economic relations.
In his meeting with Yellen, Premier Li Qiang, according to Global Times, was “urging the U.S. to maintain a ‘rational and pragmatic’ attitude and work with China to bring bilateral ties back to the right track as soon as possible, while also noting that China-U.S. ties can see ‘rainbows’ after a round of ‘wind and rain’.... China’s development is an opportunity rather than a challenge for the U.S., and a gain rather than a risk.” He added that politicizing economic cooperation or overstretching the concept of security on such cooperation does no good for the economic development of the two countries and the whole world.
At a press conference in Beijing today, Yellen said that her 10 hours of talks with senior Chinese officials were “direct” and “productive” and will help to stabilize the often rocky relationship.
Yellen said: “The U.S. and China have significant disagreements … but President Biden and I do not see the relationship between the U.S. and China through the frame of great power conflict. We believe that the world is big enough for both of our countries to thrive. … Indeed I have noted that China has lifted hundreds of millions of people out of poverty, and have made clear that the United States is not seeking to decouple from China. Indeed, I noted that China’s growth has lifted hundreds of millions out of poverty and made clear that the United States is not seeking to decouple from China. There is an important distinction between decoupling, on the one hand, and on the other hand, diversifying critical supply chains or taking targeted national security actions. We know that decoupling of the world’s two largest economies would be disastrous for both countries and destabilizing for the world. And it would be virtually impossible to undertake. We want a dynamic and healthy global economy that is open, free, and fair—not one that is fragmented or forces countries to take sides.” (https://home.treasury.gov/news/press-releases/jy1603 )
Speaking with CBS’s Margaret Brennan on “Face the Nation” on her return to the U.S., Yellen indicated that there were also discussions on dealing with the debt crisis and the international financial situation. This may also have touched upon the fact that China is moving away from Treasury bills, which must be of some concern to the Treasury Secretary. Yellen also indicated that they touched upon a planned U.S. Executive Order, which would restrict U.S. investors in China, with Yellen indicating to Brennan that the extent and the timetable for such an Executive Order were still under discussion by the Administration. Yellen also said that she had discussions with American business leaders in China who, while sharing their concerns about Chinese restrictions, indicated a great interest in expanding their operations in the country.
