Treasury Secretary Janet Yellen and Chinese Premier Li Qiang met in Beijing to discuss bilateral relations between the U.S. and China. Yellen emphasized the importance of direct and open communication in moving the relationship forward, following up on progress made by President Biden and President Xi at the Woodside Summit in November. The meeting focused on creating a level playing field for workers and businesses in both countries and addressing the impact of Chinese industrial overcapacity on American workers and firms.
The issue of overcapacity in Chinese industries, fueled by government support, was a key topic of discussion. This situation can lead to a surge of exports at depressed prices, undercutting international competitors. Yellen stressed the need for responsible management of the complex relationship between the two largest economies in the world. She emphasized the importance of cooperation and leadership in addressing global challenges, building on the foundation laid at the Woodside Summit.
Chinese Premier Li welcomed Yellen and expressed hope for a partnership between the two countries rather than adversarial relations. He noted that Chinese internet users were closely following Yellen’s visit, showing anticipation for improvements in the China-U.S. relationship. Yellen’s visit included meetings with Vice Premier He Lifeng in Guangzhou, where discussions on industries such as electric vehicles and solar energy took place. Washington is particularly concerned about Chinese industrial overcapacity in these new industries.
Yellen’s trip to China was her second in less than a year, reflecting the ongoing efforts to strengthen the bilateral relationship. She highlighted the progress made over the past year in putting the relationship on a more stable footing. Rather than ignoring differences, Yellen emphasized the importance of direct and open communication to make progress. The goal of the high-level talks in Beijing was to build on this foundation and continue working towards a more cooperative relationship between the two countries.
Overall, the meeting between Yellen and Li signaled a positive tone in U.S.-China relations, with both sides expressing a commitment to cooperation and dialogue. The focus on addressing issues such as industrial overcapacity and creating a level playing field for businesses reflects a mutual interest in finding solutions to shared challenges. By engaging in direct and open communication, both countries hope to foster a partnership that benefits not only their own economies but also the global community.
