US Treasury Secretary Janet Yellen travels to China this week in a bid to enhance economic dialogue
US Treasury Secretary Janet Yellen will embark on her first visit to China this week between July 6-9, 2023 in an attempt to mend the economic ties between the two current economic magnates in the world. The visit comes shortly after US Secretary of State Antony Blinken’s visit to China last month.
The path to healthy China-US ties is marred by several issues of strategic significance in current times, namely, the discovery of a Chinese spy balloon in the American airspace, which was shot down by the US Air Force over its territorial waters, China’s exasperation over restricted access to sensitive technologies by the US, and divergent ideological stances on issues of international importance.
The visit comes at a time when the Chinese economy is seeking ways to address the contracting post-pandemic output levels and the US is struggling to straddle its recession and keep the inflation under control. Comprehensive discussion on some sensitive, macroeconomic and financial issues prolonging over years is expected from the visit although concrete breakthroughs remain elusive.
Though expectations of bilateral dialogue remain low, both sides agree upon the cruciality of having open communication to avoid escalation of conflicts.
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The US has been undertaking concerted efforts to decrease its dependence on Chinese imports by restricting Chinese access in the domains of biotechnology, robotics and artificial intelligence. Meanwhile, China’s persistent close economic ties with Russia even in the wake of its invasion of Ukraine is a source of irritation for the US.
Ms. Yellen will address top Chinese officials and leading American firms doing business in China. The both sides will also discuss mutual areas of concern and their speedy resolution.
Ms. Yellen will also seek discussion on the Chinese ban of the American company Micron Technology, manufacturer of chips used in electronic appliances like phones, computers and more. China has voiced concerns of ‘serious cybersecurity problems’ regarding the chips used for memory storage.
The Treasury Secretary will touch upon the matter of human rights violations in China in relation to its treatment of the Muslim minority Uighur community in the Xinjiang region. Focus will also be on making sense of China’s new counterespionage law and its ramifications for foreign companies. Substantial cooperation on global issues such as climate change and managing competition between the two countries are other areas of discussion.
Ms. Yellen’s prior remarks
Yellen’s main task will be to ensure China that the US emphasis on national security and curtailing reliance on China is not with the aim of ‘disentangling’ both the economies. In an interview prior to the visit, Yellen asserted that hope and emphasis will be on ‘re-establishing contact’ and facilitating ‘healthy competition’ that could prove to be beneficial to businesses of both economies.
This being the second Cabinet-level meeting of the US with China within a month is testimony to the increased frequency of contacts between US officials and their Chinese counterparts. US President Biden now hopes to have a bilateral meeting with Xi Jinping in the upcoming few months, to discuss legitimate differences as well as areas of mutual cooperation.
