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.

 



Russia Condemns ‘Irresponsible’ Talk of Nuclear Weapons for Ukraine

Kremlin spokesman Dmitry Peskov attends a press conference of Russian President Vladimir Putin speaks at the BRICS summit in Kazan, Russia October 24, 2024. (Reuters)
Kremlin spokesman Dmitry Peskov attends a press conference of Russian President Vladimir Putin speaks at the BRICS summit in Kazan, Russia October 24, 2024. (Reuters)
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Russia Condemns ‘Irresponsible’ Talk of Nuclear Weapons for Ukraine

Kremlin spokesman Dmitry Peskov attends a press conference of Russian President Vladimir Putin speaks at the BRICS summit in Kazan, Russia October 24, 2024. (Reuters)
Kremlin spokesman Dmitry Peskov attends a press conference of Russian President Vladimir Putin speaks at the BRICS summit in Kazan, Russia October 24, 2024. (Reuters)

Discussion in the West about arming Ukraine with nuclear weapons is "absolutely irresponsible", Kremlin spokesman Dmitry Peskov said on Tuesday, in response to a report in the New York Times citing unidentified officials who suggested such a possibility.

The New York Times reported last week that some unidentified Western officials had suggested US President Joe Biden could give Ukraine nuclear weapons before he leaves office.

"Several officials even suggested that Mr. Biden could return nuclear weapons to Ukraine that were taken from it after the fall of the Soviet Union. That would be an instant and enormous deterrent. But such a step would be complicated and have serious implications," the newspaper wrote.

Asked about the report, Peskov told reporters: "These are absolutely irresponsible arguments of people who have a poor understanding of reality and who do not feel a shred of responsibility when making such statements. We also note that all of these statements are anonymous."

Earlier, senior Russian security official Dmitry Medvedev said that if the West supplied nuclear weapons to Ukraine then Moscow could consider such a transfer to be tantamount to an attack on Russia, providing grounds for a nuclear response.

Ukraine inherited nuclear weapons from the Soviet Union after its 1991 collapse, but gave them up under a 1994 agreement, the Budapest Memorandum, in return for security assurances from Russia, the United States and Britain.

Ukrainian President Volodymyr Zelenskiy said last month that as Ukraine had handed over the nuclear weapons, joining NATO was the only way it could deter Russia.

The 33-month Russia-Ukraine war saw escalations on both sides last week, after Ukraine fired US and British missiles into Russia for the first time, with permission from the West, and Moscow responded by launching a new hypersonic intermediate-range missile into Ukraine.

Asked about the risk of a nuclear escalation, Peskov said the West should "listen carefully" to Putin and read Russia's newly updated nuclear doctrine, which lowered the threshold for using nuclear weapons.

Separately, Russian foreign intelligence chief Sergei Naryshkin said Moscow opposes simply freezing the conflict in Ukraine because it needs a "solid and long-term peace" that resolves the core reasons for the crisis.