Ms. Yellen: Don't let disagreements damage US relations

US Treasury Secretary Janet Yellen held her first day of talks with top Chinese officials on July 7 after flying to Beijing to help reshape US-China trade relations in a new era.

Speaking with Chinese Premier Li Qiang in a meeting in Beijing on July 7, Ms. Yellen said that the US is looking for a healthy competition with China based on fair rules that benefit both countries, not a “winner-take-all” approach.

She also hoped her visit would promote more regular channels of communication between the world's two largest economies, adding that both countries had a duty to "show leadership" on global challenges such as climate change.

Ms. Yellen arrived in Beijing on July 6, days after the Chinese government announced new restrictions on exports of gallium and germanium, two metals needed to make semiconductors. On July 7, she told members of the American Chamber of Commerce in China that China’s sudden move underscored the need for the United States to develop alternative supply chains.

World - Ms. Yellen: Don't let disagreements harm US-China relations — Chinese Premier Li Qiang shakes hands with US Treasury Secretary Janet Yellen at the Great Hall of the People in Beijing on July 7. Photo: Washington Post

Chinese officials have also complained that the US administration is finalizing regulations that would ban US investment in Chinese technology sectors with military applications. In October 2022, US President Biden also banned the export of the most advanced computer chips to China.

Ms. Yellen asserted that such moves were intended to protect US national security, not to contain any economic rivals.

Chinese officials, however, are skeptical, as such “risk reduction” efforts affect technologies with both military and commercial potential.

“In certain circumstances, the United States will need to pursue targeted actions to protect our national security. We may disagree on these issues, but we should not allow any disagreements to lead to misunderstandings that needlessly damage our bilateral economic and financial relationship,” Ms. Yellen said.

Meanwhile, the Chinese Premier happily said that a rainbow appeared in the sky over Beijing when Ms. Yellen landed on July 6, saying that it was a good omen for the future of the relationship between the two countries, which has fallen to its lowest point since the establishment of diplomatic relations in 1979.

“I think there is more to China-US relations than wind and rain. We will definitely see more rainbows after going through wind and rain,” Mr. Li said optimistically.

World - Ms. Yellen: Don't let disagreements harm US-China relations (Image 2). — US Treasury Secretary Janet Yellen and US Ambassador to China Nicholas Burns met with representatives of the US business community in Beijing on July 7. Photo: Reuters

China's finance ministry described Ms. Yellen's visit as a "concrete measure" toward implementing the agreement between Chinese President Xi Jinping and US President Joe Biden in a meeting in November, but did not specify what the agreement involved.

“We hope the US will take concrete actions to create a favorable environment for the healthy development of economic and trade relations between the two countries,” the ministry said in a statement.

Ms. Yellen is among a number of senior US officials visiting Beijing to encourage Chinese leaders to restore interaction between the governments of the world's two largest economies. US Treasury officials have said that she will not meet with Chinese leader Xi Jinping, and neither side expects any breakthroughs during the trip .

Nguyen Tuyet (According to Bloomberg, Reuters, AP, Washington Post)

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