Evidence of détente between Washington and Beijing: “Progress if we communicate directly”

BEIJING – Strengthen the dialogue, even talking bluntly if necessary. This is the message delivered by US Treasury Secretary Janet Yellen al premier cinese Li Qiang in the Great Hall of the People a Beijing. Yellen’s five-day visit here Chinese, the second in less than a year, demonstrating how Washington and Beijing are looking for ways to improve their relationship. However, against the backdrop of American concerns about excess Chinese production which risks flooding the markets. And with the specter of the opening of a new chapter in the trade war between the two superpowers, which could lead to relations souring again. This is why we need to talk to each other.

“In the last year our relationships have consolidatedAnd. But we can only make progress if we communicate directly and openly. This doesn’t mean ignoring our differences or avoiding difficult conversations,” Yellen says. “China hopes that the two countries will be partners and not adversaries,” Li Qiang replied, adding that “constructive progress” was made during the American’s trip. Encouraging.

The focus of Yellen’s mission was China’s industrial overcapacity and the impact it could have on American workers and businesses. Washington fears that the massive subsidies for green energy, electric vehicles and batteries can flood the global market with low-cost products, putting its companies in difficulty. The subsidies provided by Beijing represent “a risk for the stability of the global economy”, commented Yellen on Friday during her stop in Canton.

Words that the domestic press did not like: «They try to revive the rhetoric of the Chinese threat and seem to create a pretext for more protectionist policies on the part of the United States», wrote the official Xinhua agency. More restrictive measures are what Beijing fears. Mashed potato Joe Biden raised the issue of China’s “unfair trade policies” last week during the phone call with Xi Jinpinghinting at a decision soon on whether or not there will be new barriers.

Progress is being made: the US and China have agreed to start a dialogue on “balanced growth” (precisely to respond to concerns about Chinese overcapacity) and also intend to intensify the fight against money laundering.

However, a positive visit for Yellen, who remains among the most popular officials of the Biden administration for the Chinese. After meeting Li and the mayor of Beijing, she attended an event at the capital’s university where students gave her a standing ovation. In Beijing she was given a private tour of the Forbidden City.

There had already been great attention on social media during her stop in Canton: with the Chinese positively surprised by how good she was at using chopsticks in the restaurant. In the evening you also met the Minister of Finance. And bilateral talks with the former deputy prime minister still remain on the agenda Liu He and the central bank governor. Yellen also warned Chinese companies against helping Russia in its war in Ukraine, threatening “significant consequences” (Bloomberg on Saturday, citing US sources, claimed that China is providing Moscow with geospatial intelligence ). The end of Yellen’s trip will coincide with a visit to Beijing (Monday and Tuesday) of Russian Foreign Minister Sergei Lavrov, to prepare for Putin’s visit here in May. China is trying to recover its relationship with the US, continuing to roll out red carpets for Moscow’s friendly neighbours.