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.

 



Top EU Officials Visit Ukraine in Show of Solidarity

01 December 2024, Ukraine, Kiev: Ukraine's Deputy Prime Minister Olha Stefanischyna (L) welcomes the new EU Council President Antonio Costa, the new EU High Representative for Foreign Affairs Kaja Kallas (2nd L), and the new EU Enlargement Commissioner Marta Kos (R) upon their arrival in Kyiv, a few hours after taking office. Photo: Ansgar Haase/dpa
01 December 2024, Ukraine, Kiev: Ukraine's Deputy Prime Minister Olha Stefanischyna (L) welcomes the new EU Council President Antonio Costa, the new EU High Representative for Foreign Affairs Kaja Kallas (2nd L), and the new EU Enlargement Commissioner Marta Kos (R) upon their arrival in Kyiv, a few hours after taking office. Photo: Ansgar Haase/dpa
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Top EU Officials Visit Ukraine in Show of Solidarity

01 December 2024, Ukraine, Kiev: Ukraine's Deputy Prime Minister Olha Stefanischyna (L) welcomes the new EU Council President Antonio Costa, the new EU High Representative for Foreign Affairs Kaja Kallas (2nd L), and the new EU Enlargement Commissioner Marta Kos (R) upon their arrival in Kyiv, a few hours after taking office. Photo: Ansgar Haase/dpa
01 December 2024, Ukraine, Kiev: Ukraine's Deputy Prime Minister Olha Stefanischyna (L) welcomes the new EU Council President Antonio Costa, the new EU High Representative for Foreign Affairs Kaja Kallas (2nd L), and the new EU Enlargement Commissioner Marta Kos (R) upon their arrival in Kyiv, a few hours after taking office. Photo: Ansgar Haase/dpa

European Council President Antonio Costa and Kaja Kallas, the EU's foreign policy chief, arrived in the Ukrainian capital Kyiv on Sunday, using the first day in their new roles to send a message of support for Ukraine in its war with Russia.
Their visit comes as Ukraine struggles to fend off a grinding Russian offensive and faces the uncertainty of US policy toward Kyiv when Donald Trump takes office next month, Reuters reported.
"From day one of the war, the EU has stood by the side of Ukraine," Costa posted on X alongside an image of himself, Kallas and EU enlargement chief Marta Kos arriving via train.

"From day one of our mandate, we are reaffirming our unwavering support to the Ukrainian people."
Both Kallas and Costa have been strong supporters of Ukraine since Russia's February 2022 invasion. However, neither can make specific pledges of further aid, requiring the support of the EU's national governments.
The EU says its institutions and member countries have made available some $133 billion in Ukraine aid since the start of the war, but future support remains uncertain especially if Trump reduces US support.
Trump has criticized the scale of aid for Kyiv and has said he will seek a swift end to the war, but without specifying exactly how.
On the battlefield, Moscow's troops are capturing village after village in a drive to eventually seize the industrial Donbas region, while Russian airstrikes are targeting Ukraine's hobbled energy grid as winter sets in.
"In my first visit since taking up office, my message is clear: the European Union wants Ukraine to win this war," Kallas wrote on X. "We will do whatever it takes for that."
As prime minister of Estonia, which borders Russia, Kallas emerged as one of the most vociferous critics of Russia. Moscow this year put her on a wanted list for destroying Soviet-era monuments.
Costa, a former prime minister of Portugal, is tasked with coordinating the work of the European Union's national leaders and chairing their summits as president of the European Council.
At a ceremony in Brussels on Friday, he said everyone was yearning for peace after more than 1,000 days of the Ukraine-Russia war, "especially the embattled and heroic Ukrainian people".
"Peace cannot mean capitulation. Peace must not reward the aggressor," he added.