Treasury Secretary Janet Yellen called upon China for collaboration on global challenges including climate change, during a recent meeting with her Chinese counterpart, Vice Premier He Lifeng. Despite tensions over technology exports and other issues, Yellen urged that disagreements should not hinder the prosperity of economic and financial relations between the two countries.
Addressing Global Challenges Together
In her conversation with He Lifeng, Yellen defended the U.S. technology export restrictions that have been a point of contention for Beijing. Yet, she expressed the need for cooperation to tackle issues like debt distress in emerging markets, developing countries, and climate change.
Reviving Bilateral Relations
Yellen is part of a series of U.S. officials visiting Beijing to rejuvenate relations currently at their lowest point in decades due to various disputes over technology, security, and Taiwan among other matters.
Welcome but No Policy Change
Despite a warm welcome from Premier Li Qiang and other Communist Party leaders, there were no indications of policy changes from China that could address U.S. concerns.
The Purpose of Yellen’s Trip
While Treasury officials clarified that the trip aimed to promote communication and no major dispute resolutions were expected, it was confirmed that Yellen wasn’t scheduled to meet Chinese leader Xi Jinping.
Climate Discussion Break-off
Climate talks between Beijing and Washington ceased last August, due to Nancy Pelosi’s visit to Taiwan, the self-ruled island democracy claimed by China as part of its territory.
Upcoming Visit by John Kerry
John Kerry, President Joe Biden’s climate envoy, is scheduled to be the next senior U.S. official visiting China. Both the U.S. and China are the leading emitters of climate-changing carbon globally.
Vice Premier’s Take on Cooperation
He Lifeng, Xi’s top economic advisor, suggested that the two countries should revert to an agreement made last November between Biden and Xi to enhance relations.
Successful Debt Reduction Efforts
With China’s Belt and Road Initiative, billions of dollars have been lent to Asian and African governments. The recent agreement to reduce Zambia’s debts was highlighted as an example of successful cooperation.
More Meetings in China
Besides He, Yellen also met with the incoming governor of China’s central bank, Pan Gongsheng, and several players in China’s climate-related finance industry.
Calls for Healthy Economic Cooperation
Yellen re-emphasized her call for “healthy economic cooperation”, indicating ongoing complaints that Beijing isn’t adhering to its free-trade commitments.
U.S. Stands Firm on Technology Export Curbs
The Treasury Secretary defended U.S. restrictions on technology exports, stating that such actions were in the interest of national security.
China’s Reaction to U.S. Trade Policies
Despite potential delays or disruptions to the development of its tech industries due to U.S. restrictions, Beijing’s response has been measured, with newly introduced controls on gallium and germanium exports.
Yellen’s Final Word
In conclusion, Yellen insisted that even amidst disagreements on certain actions, both countries should ensure that they don’t lead to misunderstandings, particularly those that might escalate from a lack of communication.
