Yellen Meets with Chinese Counterpart to Discuss Economic Issues

US Treasury Secretary Janet Yellen met with her Chinese counterpart in San Francisco to discuss economic issues and prepare for an upcoming meeting between President Joe Biden and Chinese President Xi Jinping.

US Treasury Secretary Janet Yellen and her Chinese counterpart, Vice Premier He Lifeng, met in San Francisco on Thursday for two days of talks aimed at making progress on a range of economic issues. The meeting comes at a time when competition between the United States and China has markedly intensified.

Importance of US-China Economic Relationship

In her prepared remarks before the meeting, Yellen emphasized that the United States has no desire to decouple from China. She said that the United States seeks a healthy economic relationship with China that benefits both countries over time. However, she also noted that the United States will communicate its concerns about specific economic practices that prevent American firms and workers from competing on a level playing field.

Expectations for the Meeting

Analysts say that expectations for the meeting should be kept low, given the competitive nature of the US-China relationship. Nicholas Szechenyi, deputy director for Asia at the Centre for Strategic and International Studies, said that it seems difficult for the United States to credibly emphasize themes such as inclusiveness and interconnectedness when the primary driver for US economic strategy in the Indo-Pacific is not economic cooperation, but rather economic competition.

China's Concerns

Ahead of the meeting, China's state media laid out Beijing's major concerns, including the Biden administration's China policy, supply chain curtailments, restrictions on high-tech products such as advanced chips, and tariffs on Chinese products. China called on the United States to take concrete steps to address these concerns and create a more positive environment for economic cooperation.

US Actions Affecting China

In recent months, the United States has taken several actions that have affected China, including signing an executive order to regulate and block high-tech US-based investments going toward China and moving to block exports of advanced computer chips to China. Earlier this year, US lawmakers held hearings over data security and harmful content with TikTok CEO Shou Zi Chew, contemplating whether to ban the hugely popular app because of its Chinese connections.

Efforts to Smooth Economic Ties

Despite the tensions, the United States and China have worked to smooth economic ties. Biden spoke with Chinese Foreign Minister Wang Yi at the White House for about an hour late last month, and Xi similarly met with Blinken in June. Yellen has also met with a host of Chinese officials throughout this year.

The meeting between Yellen and He Lifeng is an important opportunity for the United States and China to discuss their economic relationship and address their concerns. While expectations for the meeting should be kept low, it is important for both countries to continue to engage in dialogue and work towards a more stable and prosperous relationship.