Chinese Premier Li Qiang met with US Treasury Secretary Janet Yellen in Beijing on Friday, emphasizing the need for the US to adopt a “rational and pragmatic” attitude and collaborate with China to restore bilateral relations. Li also highlighted the potential for China-US ties to flourish after overcoming challenges.
Yellen’s visit to Beijing, her first as US Treasury Secretary, is part of an effort by US officials to enhance communication with their Chinese counterparts amidst strained bilateral relations. During their meeting, Yellen expressed the US’s interest in “healthy economic competition” and emphasized the importance of increased communication and exchange.
The increased interaction between Chinese and US officials is seen as a positive signal for the world, which is in need of dialogue and cooperation between the two largest economies. However, Chinese experts cautioned that despite recent talks, China-US relations are likely to remain at their lowest point in decades. They stressed the importance of Washington staying true to its words in order to stabilize the relationship.
During their meeting at the Great Hall of the People, Premier Li highlighted that Chinese culture values peace over hegemony and bullying. He urged the US to adopt a rational and pragmatic approach and work together with China to swiftly restore bilateral relations. Li stated that China’s development is an opportunity, not a challenge, for the US, and that politicizing economic cooperation or stretching the concept of security hinders the economic development of both countries and the world.
Li also mentioned the rainbow that Yellen saw upon her arrival in Beijing, symbolizing the potential for “more rainbows” in China-US relations after enduring difficult times.
While Li spoke, Yellen attentively listened, frequently smiling and nodding. Yellen, reading from a prepared statement, referred to the leaders of both countries emphasizing constructive efforts on macroeconomic stability and addressing shared global challenges during their meeting in Bali, Indonesia in November 2022. She expressed her intention to build on that direction and hoped that her visit would lead to more regular channels of communication between the two countries. Yellen reiterated the US’s pursuit of healthy economic competition, based on fair rules that can benefit both countries in the long run.
The focus on economic ties, which have traditionally acted as a stabilizer in the relationship, holds great significance for both countries and the world as they face significant economic challenges. Experts believe that despite the difficult atmosphere, progress in macroeconomic policies is possible.
However, differences persist between the two countries in the economic realm. While Yellen conveyed concerns from US businesses regarding China’s use of non-market tools, Chinese experts argue that such claims are exaggerated and intended to hinder China’s development. Nonetheless, there are expectations for collaboration in economic and trade areas where shared interests exist.
Yet, obstacles to win-win economic and trade cooperation have increased as the US continues to erect barriers, such as potential restrictions on investments in China and on the export of artificial intelligence chips. These measures are part of the US’s broader strategy to contain China, further straining bilateral relations.
In addition to economic and trade tensions, the US has been provoking China on multiple fronts, including the Taiwan issue and the South China Sea. The latest accusations by US Secretary of Defense Lloyd Austin regarding China’s behavior in the South China Sea drew strong condemnation from China’s Foreign Ministry.
Chinese experts suggest that the US’s established strategy of decoupling, cracking down, and competing with China makes it difficult to achieve meaningful outcomes in meetings like Yellen’s visit. Nevertheless, the resumption of communication itself is considered an accomplishment.
During her visit, Yellen also met with former Chinese Vice Premier Liu He and Yi Gang, governor of the People’s Bank of China (PBC). She is scheduled to meet with former head of the PBC Zhou Xiaochuan as well.