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.

 



Trump Team Says Israel-Hezbollah Ceasefire Deal Brokered by Biden Is Actually Trump’s Win

Former US President Republican presidential candidate Donald Trump arrives at a campaign rally in Traverse City, Michigan on October 25, 2024. (AFP)
Former US President Republican presidential candidate Donald Trump arrives at a campaign rally in Traverse City, Michigan on October 25, 2024. (AFP)
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Trump Team Says Israel-Hezbollah Ceasefire Deal Brokered by Biden Is Actually Trump’s Win

Former US President Republican presidential candidate Donald Trump arrives at a campaign rally in Traverse City, Michigan on October 25, 2024. (AFP)
Former US President Republican presidential candidate Donald Trump arrives at a campaign rally in Traverse City, Michigan on October 25, 2024. (AFP)

The Biden administration kept President-elect Donald Trump's incoming administration closely apprised of its efforts to broker the ceasefire deal between Israel and Hezbollah that took effect early Wednesday, according to the outgoing Democratic administration.

Trump’s team, meanwhile, was quick to spike the football and claim credit for the rare spot of good news for a Democratic administration that's been dragged down by the grinding Mideast conflict.

"Everyone is coming to the table because of President Trump," Florida Rep. Mike Waltz, Trump’s choice for his national security adviser, said in a post on X on Tuesday, shortly before the Israel Cabinet signed off on the agreement. "His resounding victory sent a clear message to the rest of the world that chaos won’t be tolerated. I’m glad to see concrete steps towards de-escalation in the Middle East."

The Biden administration's reported coordination with Trump's team on its efforts to forge the ceasefire in Lebanon is perhaps the highest-profile example of cooperation in what's been a sometimes choppy transition period.

Trump's transition team just Tuesday reached a required agreement with President Joe Biden’s White House that will allow transition staff to coordinate with the existing federal workforce before Trump takes office on Jan. 20. There has been some coordination on high levels between the outgoing Biden and incoming Trump teams, including talks between Biden's national security adviser Jake Sullivan and Waltz.

Biden in Rose Garden remarks on Tuesday cheered the ceasefire agreement as a critical step that he hoped could be the catalyst for a broader peace in the Mideast, which has been shaken by nearly 14 months of war following Hamas’ attack on Israel on Oct. 7, 2023.

"This is designed to be a permanent cessation of hostilities," Biden said. "What is left of Hezbollah and other terrorist organizations will not be allowed — I emphasize, will not be allowed — to threaten the security of Israel again."

White House officials are now hopeful that a calm in Lebanon will reinvigorate a multi-country effort at finding an endgame to the devastating war in Gaza, where Hamas is still holding dozens of hostages and the conflict is more intractable.

Biden said the US, as well as Israel, will engage in talks in the coming days with officials from Egypt, Qatar and Türkiye to try to get Gaza talks back on track.

But during Biden's moment of success in a conflict that has roiled his reputation at home and abroad, the specter of the incoming Trump administration loomed large.

Trump’s senior national security team was briefed by the Biden administration as negotiations unfolded and finally came to a conclusion on Tuesday, according to a senior Biden administration official. The official, who briefed reporters on the condition of anonymity on a call organized by the White House, added that the incoming Trump administration officials were not directly involved in the talks, but that it was important that they knew "what we were negotiating and what the commitments were."

Trump's team and allies, meanwhile, said there was no doubt that the prospect of the Republican president returning to power pushed both sides to get the agreement done.

Waltz, in addition to giving Trump credit for the ceasefire deal coming together, added a warning to Iran, Hezbollah's chief financial backer.

"But let’s be clear: The Iran Regime is the root cause of the chaos & terror that has been unleashed across the region. We will not tolerate the status quo of their support for terrorism," Waltz said in his post.

Sen. Lindsey Graham, a Trump ally, also gave a shoutout to the incoming administration, while giving a nod to Biden's team.

"I appreciate the hard work of the Biden Administration, supported by President Trump, to make this ceasefire a reality," Graham said in a statement.

Richard Goldberg, a senior adviser at the Washington group Foundation for the Defense of Democracies, said the moment magnifies that Iran — which he said would have needed to approve of Hezbollah agreeing to the ceasefire — is carefully weighing what lays ahead with Trump.

"There’s zero doubt that Iran is pulling back to regroup ahead of Trump coming into office," said Goldberg, a National Security Council official in Trump's first administration. "It’s a combination of Israeli military success and Trump’s election — the ayatollah has no clothes and he knows we know."