US Treasury Secretary Janet Yellen is set to meet Chinese Vice Premier He Lifeng to discuss the intricate web of issues shaping the relationship between the world’s two largest economies.
The talks, spanning two days, are expected to lay the groundwork for a potentially high-stakes meeting between US President Joe Biden and Chinese President Xi Jinping during the upcoming Asia-Pacific Economic Cooperation forum in San Francisco.
Yellen Meets Chinese Vice Premier for In-Depth Discussions
As the host for this year’s summit, the United States brings together leaders from the 21 economies in the Pacific Rim. Recent months have witnessed a positive shift in US-China relations, signaling a desire to strengthen diplomatic ties and enhance cooperation on economic fronts amidst a challenging global landscape.
Yellen’s previous meeting with He in Beijing in July marked a significant effort by the US to recalibrate relations, with four cabinet officials, including Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo, visiting Beijing since the summer.
The flurry of diplomatic engagements has contributed to stabilizing ties, addressing issues such as constraints on US investments in China’s technology sector and semiconductor trade restrictions.
Restrictions Aimed at Military Support
Tensions still exist despite the advancements, and both countries are open about the difficulties they still face.
Three pillars of Yellen’s proposed US-China partnership are working together on global concerns, promoting a fair economic relationship, and emphasizing human rights and national security. She stressed that the US wants to assure economic security by diversifying vital inputs, not by severing ties with China.
The delicate balancing act involves maintaining a steadfast stance on national security and human rights while avoiding an impression of actively undermining China’s economic future.
The Treasury Department is tasked with translating the August executive order, restricting US investment in China’s key industries, into guidelines set to take effect next year.
US officials assert that the restrictions aim to prevent capital from aiding China’s military rather than hurting its economy. Simultaneously, China, grappling with economic challenges, has implemented stimulus measures to revive its economy.
The delicate dance between the two nations reflects a recognition that stable US-China relations are vital not only for both nations but for global stability in an increasingly interconnected world.