U.S. Treasury Secretary Janet Yellen shakes hands with Chinese Premier Li Qiang at the Great Hall of the People in Beijing, April 7, 2024, as President Yellen begins two days of high-level talks in Beijing.
Tatan Shuhlana | AFP | Getty Images
U.S. Treasury Secretary Janet Yellen told Chinese Premier Li Qiang on Sunday that the two economic giants had been on “more stable footing” over the past year as they were able to have difficult conversations.
As talks began in Beijing, Li responded that the two countries needed to respect each other and should be partners rather than adversaries, adding that “constructive progress” had been made during Yellen’s visit.
Yellen appealed to Chinese leaders to curb China’s excess factory capacity, saying the two countries have an “obligation” to manage their complex relationship responsibly.
“We still have work to do, but I believe the past year has put our relationship on a more stable footing,” Yellen said. “This doesn’t mean ignoring our differences or avoiding tough conversations. It means understanding that we can only move forward if we communicate directly and openly. .”
As the world’s two largest economies, we have an obligation to ourselves and the world to responsibly manage our complex relationships…
Janet Yellen
US Secretary of the Treasury
In her second trip to China in nine months, Yellen focused on the threat China’s overproduction of electric vehicles, solar panels and other clean energy products poses to producers in the United States and other countries. There is.
She announced a 2023 bid to normalize bilateral economic relations after a period of heightened tensions due to disagreements over issues ranging from Taiwan to the origins of COVID-19 and trade disputes. I visited Beijing in July.
On Saturday, in the southern export hub of Guangzhou, Yellen and her key economic partner, Vice Premier He Lifeng, agreed to begin dialogue focused on “balanced growth.” Yellen said she would use the forum to advocate for a level playing field with China to protect American workers and businesses.
“As the world’s two largest economies, we have a strong commitment to responsibly manage our complex relationships and to cooperate and provide leadership in addressing pressing global challenges, both at home and around the world,” Yellen said to Lee. There is an obligation to do so.”
Throughout Yellen’s visit, Chinese state media has pushed back against her message about overcapacity.
State news agency Xinhua reported on Saturday that talk of “China’s excess capacity” in the clean energy sector has created a pretext for protectionist policies to protect American companies.
Xinhua said curbing China’s EV-related industry will not help the United States grow at home, raising hopes for further progress during Yellen’s visit to break down barriers to mutually beneficial cooperation. expressed.
Far from curbing investment in manufacturing, China is building “new productivity” by investing in cutting-edge technologies such as EVs, commercial spaceflight, and life sciences (in areas where many U.S. companies have an advantage). It is doubling down on President Xi Jinping’s new philosophy of unleashing the