Yellen highlighted the significant strides taken by the United States to stabilize its relationship with China…reports Asian Lite News
Treasury Secretary Janet Yellen’s recent visit to China concluded with remarks indicating an improvement in the relationship between the United States and China. Yellen stated that the US-China relationship was on a stronger footing compared to the previous year. She emphasized the importance of recent diplomatic efforts aimed at stabilizing relations between the two economic giants. Yellen’s visit, spanning six days, was strategically designed to ease tensions and foster dialogue between the two countries.
Yellen highlighted the significant strides taken by the United States to stabilize its relationship with China. She noted that economic and financial officials from both nations would convene in working groups the following week to address US concerns regarding Chinese industrial oversupply. This move towards dialogue and cooperation underscores a concerted effort to find common ground and resolve contentious issues.
Acknowledging the complexity of the US-China relationship, Yellen emphasized that the progress made was not inevitable but a result of deliberate diplomatic efforts. President Biden’s directive to intensify diplomacy with China played a crucial role in laying the groundwork for improved relations. Yellen’s meetings with key Chinese officials, including economic advisors and central bank representatives, focused on a range of issues from industrial overcapacity to financial stability.
Despite the cordial tone of discussions, underlying tensions between the two nations persist. The United States remains vigilant regarding Chinese activities in areas such as the South China Sea. President Biden is expected to caution President Xi Jinping against such actions during their forthcoming discussions. Additionally, the Treasury has voiced concerns about China’s over-subsidization of its green-tech industry, warning against the potential ramifications of flooding global markets with cheap products.
Yellen drew attention to historical precedents, particularly China’s past practices in flooding global steel markets, which led to adverse effects on industries worldwide. The Treasury Secretary stressed that the Biden administration would not tolerate a similar scenario unfolding with green technologies. Such concerns are shared by US allies and partners, underlining the global significance of addressing Chinese industrial practices.
However, Chinese officials have refuted US claims of oversupply and subsidies. China’s Commerce Minister, Wang Wentao, asserted that the country’s renewable energy and electric vehicle industries were driven by innovation and market competition rather than subsidies. This response underscores the divergence in perspectives between the two nations on key economic issues.
Despite the disparities in viewpoints, both countries recognize the importance of dialogue and cooperation in maintaining stability and promoting economic growth. While challenges remain, efforts to engage in constructive dialogue and address mutual concerns are vital for navigating the complexities of the US-China relationship.
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