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.

 



Tehran Ready for Negotiations with Washington ‘Based on Trust’

Iranian government spokeswoman Fatemeh Mohajerani. (Jamaran news)
Iranian government spokeswoman Fatemeh Mohajerani. (Jamaran news)
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Tehran Ready for Negotiations with Washington ‘Based on Trust’

Iranian government spokeswoman Fatemeh Mohajerani. (Jamaran news)
Iranian government spokeswoman Fatemeh Mohajerani. (Jamaran news)

The Iranian government stated on Tuesday that upcoming negotiations in Geneva over its nuclear program will be guided by the directives of Supreme Leader Ali Khamenei and the interests of the Iranian people.

Iran plans to hold talks on Friday in Geneva with France, Britain and Germany, following a recent resolution by the International Atomic Energy Agency (IAEA) censuring Tehran for its lack of cooperation on its nuclear activities.

Government spokesperson Fatemeh Mohajerani confirmed that the meeting between Iran’s deputy foreign minister and representatives from the three European nations will proceed under the framework of “national interests as emphasized by the Supreme Leader.” She noted that discussions will encompass bilateral, regional and international issues, including the crises in Gaza and Lebanon and broader efforts to promote peace in the region.

Asked about the possibility of direct negotiations with the United States, Mohajerani stated that Tehran is “open to considering any proposal aligned with its national interests.” However, she stressed that “dialogue requires respect and trust, which cannot be built through mere rhetoric.”

Majid Takht-Ravanchi, Deputy Foreign Minister for International Affairs, will lead the Iranian delegation at the Geneva talks, according to Iranian media.

Media outlets close to the Iranian Revolutionary Guard Corps (IRGC) expressed cautious optimism about the Geneva talks, but tempered expectations. The IRGC-affiliated Nour News described the meeting as a “small but significant opportunity for both sides to find common ground and reduce unnecessary tensions that have strained their relations in recent years.”

Both Iran and its European counterparts appear inclined to pursue de-escalation and resume diplomatic channels to resolve disputes, it reported. Analysts quoted by the site characterized the talks as “an essential step in rebuilding trust between Iran and Europe.” If sustained, these efforts could end the two-year stalemate in negotiations over the nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA).

The IAEA’s Board of Governors recently passed a resolution urging Iran to increase its cooperation with the agency. The resolution called for the IAEA Director General to deliver “a comprehensive and updated assessment on the possible presence or use of undeclared nuclear materials in connection with Iran’s past and current nuclear activities.”

Western powers, including the United States, France, Britain and Germany, dismissed Iran’s last-minute proposal to limit its stockpile of 60%-enriched uranium—close to weapons-grade—as “inadequate and insincere.”

In response, Iran announced the activation of advanced centrifuges at its Fordow and Natanz uranium enrichment facilities.

Despite the heightened tensions, Iranian Foreign Ministry spokesperson Esmail Baghaei underscored Tehran’s commitment to a policy of engagement and cooperation. He framed the upcoming talks as a continuation of discussions held on the sidelines of the UN General Assembly in New York.

Iranian media claimed that Tehran has refrained from actions that could complicate negotiations in recent months. However, they accused European powers of taking “unconstructive measures” that have hindered the diplomatic process.