BEIJING: US Treasury Secretary Janet Yellen, embarked on a diplomatic mission to Beijing with the aim of defusing tensions between the United States and China, the world’s two economic powerhouses.
While prospects for a breakthrough were modest, both sides acknowledged that safeguarding national security interests now takes precedence over deepening economic ties.
According to a US Treasury official, Yellen engaged in an informal dialogue with China’s central bank governor, Yi Gang, and the former economic czar, Liu He, in a meeting characterized as a “substantive conversation.” However, no further details were provided regarding the specifics of their discussions, according to THE EDGE.
Liu He, although now retired, maintains a close relationship with Chinese President Xi Jinping. This recent meeting serves as a follow-up to previous discussions held in Zurich earlier this year.
Expressing her intentions on Twitter, Yellen wrote, “We seek a healthy economic competition that benefits American workers and firms and to collaborate on global challenges.” She emphasized the need for effective communication to prevent any miscommunication or misunderstandings, while also reiterating the United States’ commitment to protecting national security when necessary.
In response, China’s finance ministry issued a statement expressing hope that the United States would take tangible measures to foster a favourable environment for the development of bilateral economic and trade relations. The statement emphasized the detrimental consequences of a trade war or decoupling, asserting that there are no winners in such scenarios.
American companies operating in China are hopeful that Yellen’s visit will ensure that trade and commercial channels between the two economies remain open, regardless of the geopolitical tensions at play.
Michael Hart, president of the American Chamber of Commerce in China, emphasized the significance of Yellen’s visit, highlighting its potential to foster dialogue between mid-level officials from both sides. He noted that a prolonged absence of high-level US government leaders visiting China would contribute to a chill in the market.
The outcome of Yellen’s visit remains uncertain, as the challenges and complexities of the US-China relationship persist. Nevertheless, the discussions held during this diplomatic engagement may lay the groundwork for future cooperation and understanding between the two economic giants.
