Janet Yellen Discusses U.S.-China Economic Relations
Positive Dialogue Between U.S. and China
During a meeting in Beijing, U.S. Treasury Secretary Janet Yellen and Chinese Premier Li Qiang highlighted the importance of constructive conversations in maintaining stable economic relations between the two nations. Yellen emphasized the need for open communication to address differences and make progress.
Focus on Managing Complex Relations
Yellen stressed the responsibility of both countries to manage their complex relationship effectively. She raised concerns about China’s excess factory capacity and advocated for fair competition to protect U.S. workers and businesses.
Efforts to Normalize Bilateral Relations
Yellen’s visit to China aimed to normalize economic relations following periods of tension over various issues. Discussions with Vice Premier He Lifeng in Guangzhou focused on promoting balanced growth and addressing barriers to cooperation.
China’s Investment in Technology
Contrary to concerns about excess capacity, China has intensified investments in cutting-edge technology, including electric vehicles, commercial spaceflight, and life sciences. This approach aligns with President Xi Jinping’s strategy of unleashing new productive forces.
Challenges in the Clean Energy Sector
While Yellen raised concerns about China’s dominance in clean energy production, Chinese state media pushed back, emphasizing the need for mutual cooperation. The dialogue between the two countries continues to address barriers hindering beneficial collaboration.
Suppressing China’s EV-related industries will not help the U.S. grow its own, Xinhua said, expressing hope that more headway could be made during Yellen’s visit to break down barriers hindering mutually beneficial cooperation.
Far from curbing investment in manufacturing, China has doubled down on President Xi Jinping’s new mantra of unleashing “new productive forces,” by investing in cutting-edge technology including EVs, commercial spaceflight and life sciences – areas where many U.S. firms hold advantages.
