Source: AFP
US Treasury Secretary Janet Yellen and Chinese Premier Li Qiang struck a hopeful note for bilateral relations at the start of their meeting on Sunday in Beijing.
The US-China relationship can only move forward with direct and open communication, Yellen told Li, after arriving in the Chinese capital from the southern city of Guangzhou.
Li, welcoming Yellen, said that “China sincerely hopes that the two countries will be partners, not rivals.”
He added that Chinese netizens had closely followed the details of her trip since her appearance in Guangzhou, showing “expectation and hope for the continued improvement of the China-US relationship.”
In Guangzhou, Yellen had a series of meetings that included hours of talks with her counterpart, Vice Premier He Lifeng.
Both countries have since agreed to hold talks on balanced development under an existing working group, allowing officials to discuss the key US concern of “overcapacity”.
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This refers to a situation where Chinese government support to industries is fueling production capacity but risks spilling over into exports at depressed global market prices, undercutting international competitors.
Washington is particularly concerned about this phenomenon in new industries such as electric vehicles and solar energy.
Yellen’s trip marks her second visit to China in less than a year.
“While we have more to do, I believe that, over the past year, we have put our bilateral relationship on a firmer footing,” she said in her opening speech to Premier Li as he begins two days of high-level talks in Beijing.
Rather than ignoring differences, it means “understanding that we can only make progress if we communicate directly and openly with each other,” the finance ministry chief said.
Tensions remain
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Yellen added that both countries — the world’s two largest economies — have a duty to “responsibly manage our complex relationship” and show leadership when it comes to working on global challenges.
On Saturday, the Treasury Department also announced that United States and Chinese officials would begin talks under another existing task force on cooperation to combat money laundering.
The aim is to cut off the funding of actors such as drug dealers.
Source: AFP
Washington is seeking to work with Beijing to cut supply lines for the production of fentanyl, the synthetic painkiller behind an overdose epidemic in the US.
Despite the results of the meetings so far, China’s state-run Xinhua news agency warned in a commentary about the “specter of protectionism” in the United States.
He criticized existing US tariffs on Chinese imports while accusing Washington of “suppressing” China’s electric vehicle-related industries, signaling tensions that remain.
Another state media outlet, the Global Times, pointed to “negative actions toward China” in an editorial, citing US trade and technology restrictions and “an ever-growing list of sanctions against Chinese companies.”
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“Advancement Potential”
“Yellen’s visit opened up space to test the possibility of progress,” Brookings Institution senior fellow Ryan Haas told AFP.
She added that her trip “illuminates that the Chinese recognize the need to deal with excess capacity and are ready to explore anti-money laundering cooperation.”
But only time can tell if these efforts bring material progress, he said.
In meetings with Vice Premier He, Yellen also warned companies in China against providing support to Russia’s war in Ukraine — including Moscow’s defense industrial base — warning of “significant consequences.”
In Beijing, Yellen will also meet with the city’s mayor Yin Yong and Chinese Finance Minister Lan Fo’an on Sunday.
On Monday, he is due to speak with former vice premier Liu He and central bank governor Pan Gongsheng.
Source: AFP