Positive conclusion after the Beijing trip: Yellen: The world is big enough for the United States and China

Positive conclusion after the Beijing trip
Yellen: A world big enough for the United States and China

7/9/2023 7:21 AM

US Treasury Secretary Yellen sees US-China relations on a more solid footing after her four-day visit to Beijing. Despite the disagreements, they emphasize the need for productive conversations. She sees similarities, especially when it comes to climate protection.

US Treasury Secretary Janet Yellen said her four-day visit to Beijing had put China-US relations “on a more secure footing.” “No visit will solve our challenges overnight,” Yellen said at the end of her stay at the US Embassy in Beijing. Yelin said she expects “this trip will help build a flexible and fruitful communication channel with the new economic team in China.”

Despite the significant differences of opinion between Beijing and Washington, which must be conveyed directly, the two largest economies in the world have an “obligation” to responsibly manage their relations, the US Treasury Secretary stressed. The conversations were “direct” and “productive”.

She said the two countries must now find a way to “live together and share global prosperity”, stressing that high-level talks are “essential”. “We believe the world is big enough for our two countries to thrive.”

Trade restrictions strain relations

The differences include trade restrictions that Washington believes are necessary to protect US national security. Yellen stressed that Washington will not use these measures for economic gain.

All of the new measures will also be implemented in a “transparent manner,” Yellen said, with the goal of other potential restrictions that could regulate US foreign investment in China more strictly. Yellen said it would be “just a very targeted measure, limited to a few sectors that we have (…) security concerns”.

Emphasis on cooperation in the field of climate protection

Yellen had previously stressed the great importance of cooperation on climate protection. It is “critical” that Washington and Beijing continue to cooperate in financing climate-friendly investments. China and the United States of America are the world’s largest emitters of carbon dioxide and at the same time make the largest investments in renewable energy. Yellen said in a meeting with experts that the two countries therefore “have the responsibility and the ability to move forward.”

Yellen is in China for a four-day visit to defuse tensions between the two countries and discuss opportunities for cooperation. Beijing had already struck a relatively optimistic note on relations between the two countries in the run-up to the visit. China’s Finance Ministry said on Friday that it hopes to “enhance communication and exchange between the two countries.”