Treasury Secretary Janet L. Yellen called for a second round of high-level talks this week aimed at further stabilizing relations between the world's largest economies as U.S. political hostilities intensify ahead of the presidential election. is planning a visit to China.
During four days of meetings in Guangzhou and Beijing, Yellen will meet with representatives of American companies, Chinese students and professors, and top Chinese business leaders. The visit comes as the Biden administration announces a tougher stance on China, including restricting access to U.S. technology and maintaining tariffs on billions of dollars of Chinese exports, as well as opening normal lines of communication and economic warfare. This was done while trying to find a balance to avoid this.
The Treasury Department announced the trip after President Biden and Chinese President Xi Jinping spoke by phone on Tuesday on a variety of issues. The White House said in a statement after the call that Biden expressed concern to Xi about China's “unfair trade policies and non-market economic practices” that harm American workers, and said the U.S. The company explained that it will continue to take measures to prevent any negative impact on workers. Access to advanced U.S. technology that could threaten national security.
A senior Treasury official who previewed Yellen's visit said the trip was done in the spirit of responsibly managing the economic relationship between the two countries.
But there are growing concerns within the administration about China's strategy to expand exports of green energy technologies such as solar panels and batteries.
The official said the two sides could have a “candid” dialogue about the Biden administration's concerns about the impact of China's industrial overproduction on global supply chains such as solar technology, electric vehicles and lithium-ion batteries. He said it was expected. The two leaders will also discuss the global economy, efforts to curb drug trafficking and how to work together to combat climate change.
In China, Yellen will meet with Guangdong Governor Wang Weizhong. Vice Premier He Lifeng. Former Vice Prime Minister Liu He. and Mr. Pan Gongsheng, Governor of the People's Bank of China.
Yellen made her first visit to China as Treasury secretary in July last year. As an economist who has opposed the merits of tariffs, she has been well-received by Chinese officials who see her as a voice of reason within the Biden administration.
Engagement with China is particularly difficult during U.S. election periods, when Democrats and Republicans often heighten anti-China sentiment. This year was no different, with former President Donald J. Trump proposing additional and even higher tariffs on Chinese imports, and Republicans calling for further restrictions on Chinese investment in the United States.
At the same time, the Biden administration is considering tariffs on imports of green energy technology from China and is watching with concern as Chinese companies increase investment in Mexico to expand access to U.S. consumer markets. There is.
The White House also closely monitors the Chinese-owned social media platform TikTok, recently imposing sanctions on a group of Chinese hackers. And the Treasury Department is developing a new program that would limit Chinese investment in certain areas that the Biden administration believes could threaten U.S. national security.
Yellen's visit to China last year brought little progress. However, it led to formal structures to ensure continuous communication. Treasury officials said regular meetings of the new Economic and Financial Working Group would provide a format for the two countries to communicate policy concerns and help prevent a breakdown in the relationship.
Mark Sobel, a former Treasury Department official, noted that the U.S. and China account for about 40% of the world's gross domestic product, and the relationship is critical to the global economy. He suggested that beyond macroeconomic issues, they would also discuss U.S. sanctions policy and the issue of low-income countries that owe money to China.
Even if no major progress is made, dialogue remains important, Sobel said.
“While many things have gone wrong in recent U.S.-China relations, even if the two sides have different views, this meeting will help reduce misunderstandings and provide context for the other side,” Sobel said. Ta.