BEIJING: US Treasury Secretary Janet Yellen has made an appeal to China’s Prime Minister Li Qiang, urging him not to let frustrations over US restrictions on access to processor chips and other technology disrupt economic cooperation. Yellen’s visit to Beijing aims to improve strained relations between the two countries.
During her meeting with Premier Li, Yellen emphasized the need for cooperation between Washington and Beijing on issues that impact the global community. She called for “regular channels of communication” at a time when bilateral relations are at their lowest point in decades due to disputes over technology, security, and other contentious matters.
Yellen is one of several senior US officials visiting Beijing to encourage Chinese leaders to revive government-to-government interactions between the world’s two largest economies. However, no breakthroughs were expected, and Yellen did not have a scheduled meeting with Chinese leader Xi Jinping.
Yellen defended the “targeted actions” taken by the US, referring to the restrictions placed on Chinese access to advanced processor chips and other technologies, stating that they are necessary to safeguard national security. While acknowledging potential disagreements, she emphasized the importance of avoiding misunderstandings that could further deteriorate bilateral economic and financial relationships.
US Calls for Healthy Economic Competition
The US Treasury Secretary also called for “healthy economic competition,” addressing concerns about Beijing’s increased use of subsidies and market barriers to protect domestic companies. Yellen stressed that a fair set of rules would benefit both countries and highlighted the crucial need for cooperation between the US and China in addressing global challenges.
Premier Li expressed optimism that conditions might improve but did not indicate any potential changes in Chinese policies that have caused concerns in Washington and among trading partners.
The Chinese finance ministry referred to Yellen’s visit as a “concrete measure” in carrying out an agreement between President Xi and President Joe Biden to improve relations. However, the ministry did not mention any specific initiatives and called on the US to take the first steps in creating a favorable environment for healthy economic and trade relations.
US Restrictions on China’s Access to Technology
The US restrictions on Chinese access to technology pose a significant threat to the ruling Communist Party’s efforts to develop industries related to telecommunications, artificial intelligence, and other key sectors. In response, China announced this week that it would impose unspecified export controls on gallium and germanium, metals used in the production of semiconductors and solar panels, affecting import-dependent countries like South Korea.
Yellen’s visit also included meetings with businesspeople and discussions on concerns raised by the US business community regarding China’s use of non-market tools and barriers to market access. Yellen reiterated that the US does not seek a complete separation or decoupling of the two economies but emphasized the importance of maintaining stability and avoiding detrimental effects on the global economy.
US Secretary of State Antony Blinken recently met with Chinese leader Xi Jinping, where they agreed to stabilize relations but failed to reach a consensus on improving military communications. The visit by John Kerry, the US Special Presidential Envoy for Climate, is scheduled to be the next official visit to China, highlighting the critical role that both countries play in addressing climate change as the world’s top emitters of carbon emissions.
