US Treasury Secretary Janet Yellen’s Visit to China: Addressing Key Trade Issues and Promoting Dialogue and Cooperation

Edward Lyman*

US Treasury Secretary Janet Yellen’s second visit to China in nine months represented a milestone in efforts to promote dialogue and constructive cooperation between the world’s two largest economies. Against the backdrop of the rapidly changing international situation and fluctuations in bilateral relations, Yellen prioritized addressing key trade issues affecting the interests of both States United and China.

Yellen last visited Beijing in July 2023 to try to normalize bilateral economic relations after a period of growing tension due to disagreements over issues from Taiwan to the origin of “Covid-19” and disputes trade

Meanwhile, US concerns have grown about an oversupply of subsidized Chinese clean energy products, such as solar power, electric cars and lithium-ion batteries, which can be exported to international markets at prices discounted

This point, which has a major impact on the dynamics of global trade, is one of the main issues raised by the Treasury Secretary during the visit, as she tries to persuade Chinese officials to limit the production capacity in addition to this because it harms the competitiveness of the world. local companies in the United States and other countries. At a time when US allies, including Japan and Europe, share Washington’s concern, as several cheap Chinese products, such as solar panels, have flooded their markets.

“China’s overcapacity could lead to spillovers that would affect economies around the world,” Yellen said. Managing this potential requires concerted efforts and market-based reforms, ensuring fair competition and sustainable economic growth for US and Chinese businesses.

During her meetings with senior Chinese officials, the US Secretary stressed the importance of cooperation, while at the same time acknowledging the great differences between the two countries. Central to his agenda was the issue of China’s trade practices, which was a source of concern for American companies and workers. His focus on addressing these differences highlights the importance of creating equal opportunities for all stakeholders involved.

At the start of her meeting with the Chinese premier, Yellen pointed out that the ability of the two countries to engage in negotiations, even if difficult, put the two major economic powers on a more stable footing last year, the affirm that Washington and Beijing have. responsible for managing the “complex relationship”.

She said: “Although we need to do more, I believe we put our bilateral relationship on a more stable footing last year. This does not mean ignoring our differences or avoiding difficult conversations, but understanding that achieving progress depends on our direct and open communication with each other.”

In addition, Yellen’s visit to Guangzhou to meet with Chinese and American business leaders from the American Chamber of Commerce in China was of strategic importance and another dimension, given the city’s status as a major manufacturing center and home to Chinese companies. famous

The visit also underscores the importance of engaging with key stakeholders in sectors that are driving innovation and technological progress, addressing concerns about trade restrictions, and the importance of collaboration on pressing global issues such as climate change.

Despite disagreements about some issues, Yellen’s visit generally shows a strong commitment to open and direct communication between Washington and Beijing. Both countries are aware of the importance of maintaining dialogue to address points of disagreement and promote greater understanding. Her positive comments about Chinese cuisine highlighted the importance of cultural exchanges in strengthening bilateral relations.

The Treasury Secretary’s letter to Beijing on the impact of subsidized exports on American jobs underscores the need for collaborative solutions to shared challenges. The visit should be a positive step forward in building a new era of US-China relations marked by mutual respect, cooperation and sincere dialogue. It also represents an important opportunity to address long-standing issues in bilateral relations.

By encouraging open dialogue and seeking common ground, both sides can work towards a future of shared prosperity and stability. As we navigate the complexity of the global economy, constructive engagement between the United States and China remains essential to addressing shared challenges and building a brighter future for all.

* Chairman of the Board of Directors of Lehman Bush, an American financial services company based in China. (China Daily)