US Treasury Secretary Janet Yellen emphasized during her visit to Beijing that the United States is pursuing a different approach with China, focusing on "healthy" competition rather than a "winner-take-all" mentality. Yellen's four-day trip, her first as Treasury chief, aims to stabilize the strained relationship between the two countries. She assured Chinese Premier Li Qiang that the US does not seek an economic showdown and desires fair economic competition with mutually beneficial outcomes. While the US has implemented measures to limit China's access to advanced technology for national security reasons, Yellen emphasized that these actions should not derail the overall economic and financial relationship between the two nations.
Yellen expressed her concerns about the recently imposed export controls by Beijing on crucial metals used in semiconductor manufacturing, stating that they underscore the importance of building resilient and diversified supply chains. Despite the tensions, Chinese officials have adopted an optimistic stance, emphasizing the mutually beneficial nature of China-US economic and trade relations. Yellen had substantive conversations with her Chinese counterparts, including former Vice Premier Liu He and the outgoing governor of China's central bank, Yi Gang, discussing the global economic outlook and respective economic prospects for both countries.
Analysts view Yellen's visit as a potential opportunity to improve relations, as she is considered a more down-to-earth member of the Biden administration. The aim is to foster understanding and prevent miscommunication or misunderstanding between the two nations. While no specific policy breakthroughs are expected during this visit, the US hopes for frank and productive conversations that can pave the way for future discussions.
However, Yellen faces challenges in convincing Beijing that US actions, such as tightened export curbs on high-end semiconductors, are intended to protect national security rather than hinder China's economic growth. The possibility of restricting Chinese firms' access to US cloud computing services provided by companies like Amazon and Microsoft is also being considered by the US administration, further complicating the landscape.
