Yellen Sees 'Progress' in Rocky US-China Ties, Expects More Communication

US Treasury Secretary Janet Yellen, left, shakes hands with China's Vice Premier He Lifeng during their meeting at the Diaoyutai State Guesthouse in Beijing, Saturday, July 8, 2023. (Pedro Pardo/Pool Photo via AP)
US Treasury Secretary Janet Yellen, left, shakes hands with China's Vice Premier He Lifeng during their meeting at the Diaoyutai State Guesthouse in Beijing, Saturday, July 8, 2023. (Pedro Pardo/Pool Photo via AP)
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Yellen Sees 'Progress' in Rocky US-China Ties, Expects More Communication

US Treasury Secretary Janet Yellen, left, shakes hands with China's Vice Premier He Lifeng during their meeting at the Diaoyutai State Guesthouse in Beijing, Saturday, July 8, 2023. (Pedro Pardo/Pool Photo via AP)
US Treasury Secretary Janet Yellen, left, shakes hands with China's Vice Premier He Lifeng during their meeting at the Diaoyutai State Guesthouse in Beijing, Saturday, July 8, 2023. (Pedro Pardo/Pool Photo via AP)

US Treasury Secretary Janet Yellen said 10 hours of meetings with senior Chinese officials in recent days were "direct" and "productive", helping stabilize the superpowers' often rocky relationship as her four-day Beijing trip ended.
Before departing China on Sunday, Yellen said the United States and China remained at odds on a number of issues but expressed confidence that her visit had advanced efforts to put the relationship on "surer footing", Reuters said.
"The US and China have significant disagreements," Yellen told a press conference at the US embassy in Beijing, citing Washington's concerns about what she called "unfair economic practices" and recent punitive actions against US firms.
"But President (Joe) Biden and I do not see the relationship between the US and China through the frame of great power conflict. We believe that the world is big enough for both of our countries to thrive."
With US-China relations at a low over national security issues, including Taiwan, US export bans on advanced technologies, and China's state-led industrial policies, Washington has been trying to repair ties between the world's two biggest economies.
Secretary of State Antony Blinken visited Beijing last month, the first trip by the top US diplomat in Biden's presidency. Climate envoy John Kerry is expected to visit this month.
The US diplomatic push comes ahead of a possible meeting between Biden and President Xi Jinping at September's Group of 20 summit in New Delhi or a Asia-Pacific Economic Cooperation gathering scheduled for November in San Francisco.
Yellen said her visit aimed to establish and deepen ties with China's new economic team, reduce the risk of misunderstanding and pave the way for cooperation in areas such as climate change and debt distress.
"I do think we've made some progress and I think we can have a healthy economic relationship that benefits both of us and the world," she said, adding that she expected increased and more regular communications at the staff level.
Briefing reporters after the visit, a senior Treasury official said the trip as expected did not result in specific policy breakthroughs, but was "very successful" in terms of "re-establishing contact" and building relationships.
She said Chinese officials raised concerns about an expected US executive order restricting outbound investment, but she assured them any such measure would be narrow in scope and enacted in a transparent way, through a rule-making process that would allow public input.
Yellen said she told Chinese officials they could raise concerns about US actions, so that Washington could explain, and "possibly in some situations, respond to unintended consequences of our actions if they're not carefully targeted."
DECOUPLING WOULD BE 'DISASTROUS'
Yellen met with officials including Premier Li Qiang and People's Bank of China Deputy Governor Pan Gongsheng, whom she referred to as the head of the central bank, appearing to confirm his expected promotion.
She also met US companies doing business in China, climate finance experts and women economists.
In her meetings with officials, she urged more cooperation between the sides on economic and climate issues while criticizing what she called "punitive actions" against US companies in China.
She reiterated that Washington was not seeking to decouple from China's economy, as doing so would be "disastrous for both countries and destabilizing for the world."
The US has implemented export controls designed to restrict China's ability to acquire high-tech microchips that Washington fears could have military applications and is considering an executive order to curb US investment in sensitive areas.
But some US lawmakers want stronger action. A bipartisan group has proposed giving the government sweeping powers to block billions in US investment into China.
Yellen said she had emphasized to her Chinese counterparts that any investment curbs would be "highly targeted, and clearly directed, narrowly, at a few sectors where we have specific national security concerns," to avoid "unnecessary repercussions".
Yellen stressed that any executive order would not be for economic gain and talked through what such an order "might look like" with her Chinese counterparts, according to the senior treasury official.
Asked about plans by Brazil, Russia, India, China, and South Africa to create a common trading currency for their BRICS group, Yellen said she expected the dollar to remain the dominant currency in international transactions.
On Russia's war in Ukraine, she told her Chinese interlocutors it was "essential" that Chinese firms avoid providing Moscow with material support for the war or in evading sanctions.

 



Azerbaijan's President Says Crashed Plane Was Shot at from Russia

People attend the funeral of Captain Igor Kshnyakin, co-pilot Alexander Kalyaninov and flight attendant Hokuma Aliyeva, crew members of Azerbaijan Airlines Flight J2-8243 that crashed near the Kazakh city of Aktau, in Baku, Azerbaijan December 29, 2024. REUTERS/Aziz Karimov
People attend the funeral of Captain Igor Kshnyakin, co-pilot Alexander Kalyaninov and flight attendant Hokuma Aliyeva, crew members of Azerbaijan Airlines Flight J2-8243 that crashed near the Kazakh city of Aktau, in Baku, Azerbaijan December 29, 2024. REUTERS/Aziz Karimov
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Azerbaijan's President Says Crashed Plane Was Shot at from Russia

People attend the funeral of Captain Igor Kshnyakin, co-pilot Alexander Kalyaninov and flight attendant Hokuma Aliyeva, crew members of Azerbaijan Airlines Flight J2-8243 that crashed near the Kazakh city of Aktau, in Baku, Azerbaijan December 29, 2024. REUTERS/Aziz Karimov
People attend the funeral of Captain Igor Kshnyakin, co-pilot Alexander Kalyaninov and flight attendant Hokuma Aliyeva, crew members of Azerbaijan Airlines Flight J2-8243 that crashed near the Kazakh city of Aktau, in Baku, Azerbaijan December 29, 2024. REUTERS/Aziz Karimov

Azerbaijani President Ilham Aliyev said on Sunday that a passenger plane that crashed last week, killing 38 people, had been damaged by accidental shooting from the ground in Russia, adding that some in Russia had lied about the cause of the disaster.
Russian President Vladimir Putin on Saturday apologized to Aliyev for Wednesday's "tragic incident" in Russian airspace involving Azerbaijan Airlines Flight J2-8243 after Russian air defenses engaged Ukrainian attack drones.
A Kremlin statement did not say Russia had shot down the plane, only noting a criminal case had been opened.
"Our plane was shot down by accident," Aliyev said on state television on Sunday, adding that the plane had come under some sort of electronic jamming and had then been shot at while it was approaching the southern Russian city of Grozny.
The pilots, who died in the crash, have been lauded in Azerbaijan for a landing that allowed 29 people to survive.
"Unfortunately, in the first three days we heard only absurd versions from Russia," Aliyev said, citing statements in Russia that attributed the crash to bird strike or the explosion of some sort of gas cylinder.
"We witnessed clear attempts to cover up the matter," said the Azerbaijani leader, who has close ties to Russia and was educated at one of Moscow's top universities.
Aliyev said he wanted Russia to accept it was guilty of downing the plane and to punish those responsible.
Putin and Aliyev held another telephone call on Sunday, the Kremlin said. It gave no details but on Saturday it said that both civilian and military specialists were being questioned about what had taken place.
The chief of Russia's Investigative Committee, Alexander Bastrykin, on a phone call assured Azerbaijan's Prosecutor General that Moscow had assigned the investigation to the most experienced experts and that actions were being taken to establish the cause and circumstances of the incident.
The plane crashed on Wednesday near the city of Aktau in Kazakhstan after diverting from southern Russia where Ukrainian drones were attacking several cities at the time, according to the Kremlin.
The extremely rare publicized apology from Putin on Saturday is the closest Moscow has come to accepting some blame for the disaster.
Four sources with knowledge of the preliminary findings of Azerbaijan's investigation into the disaster told Reuters on Thursday that Russian air defenses had mistakenly shot it down.
BURIALS
Azerbaijan on Sunday paid tribute to the pilots and passengers of the plane.
Captain Igor Kshnyakin and co-pilot Alexander Kalyaninov, both ethnic Russians with Azerbaijan citizenship, and Hokuma Aliyeva, a flight attendant, were given full honors at a ceremony at the Alley of Honor in central Baku attended by Aliyev and his wife, Mehriban.
"The pilots were experienced and knew they would not survive this crash landing," Aliyev said, praising them for sacrificing themselves.
"In order to save the passengers, they acted with great heroism and as a result of this, there were survivors," he said.
Aliyev awarded the crew posthumously with the titles of National Hero of Azerbaijan.