U.S. Treasury Secretary Janet Yellen shakes hands with Chinese Prime Minister Li Qiang at the Great Hall of the People in Beijing on April 7, 2024, as Yellen begins two days of high-level talks in Beijing.
Father Soufrana | AFP | Getty Images
U.S. Treasury Secretary Janet Yellen told Chinese Premier Li Qiang on Sunday that the ability to have difficult conversations has allowed the two economic superpowers to “stand on a firmer footing” over the past year.
As their meeting began in Beijing, Li Keqiang responded that the two countries needed to respect each other and should be partners, not adversaries, adding that Yellen had made “constructive progress” during her trip.
Yellen said Washington and Beijing had a “responsibility” to manage the complex relationship responsibly, and she made a pitch to China’s leadership to rein in excess factory capacity in the country.
“While we still have more work to do, I believe our bilateral relationship has been put on a more stable footing over the past year,” Yellen said. “That doesn’t mean ignoring me.” our differences or avoid difficult conversations. This means understanding that we can only make progress if we communicate directly and openly with each other.”
As the world’s two largest economies, we have a responsibility to our countries and to the world to responsibly manage our complex relationship…
Janet Yellen
U.S. Treasury Secretary
Yellen made the threat to U.S. and other producers from China’s overproduction of electric vehicles, solar panels and other clean energy products a focus of her second trip to China in nine months.
She visited Beijing in July 2023 to try to normalize bilateral economic relations. It comes after tensions rose over disagreements over Taiwan, the origins of COVID-19 and trade disputes.
On Saturday, in the southern export hub of Guangzhou, Yellen and her main economic rival, Vice Prime Minister Ho Lifeng, agreed to launch a dialogue focused on “balanced growth.” Yellen said she intends to use the forum to advocate for a level playing field with China to protect American workers and businesses.
“As the world’s two largest economies, we have a responsibility to our country and the world to responsibly manage our complex relationship and to cooperate and provide leadership in addressing pressing global challenges,” Yellen told Li Keqiang. “
During Yellen’s visit, Chinese state media have been pushing back against Yellen’s comments about overcapacity.
The official Xinhua News Agency said on Saturday that trumpeting “Chinese overcapacity” in clean energy created a pretext for protectionist policies to protect U.S. companies.
Xinhua News Agency stated that suppressing China’s electric vehicle-related industries will not help the development of the United States itself, and hopes that more progress can be made during Yellen’s visit to China and that barriers to mutually beneficial cooperation can be broken.
Far from curbing investment in manufacturing, China has stepped up President Xi Jinping’s new mantra of unleashing “new productivity” by investing in cutting-edge technologies such as electric vehicles, commercial aerospace and life sciences – areas in which many U.S. companies have an advantage.
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