“We have a duty to each other” — U.S Secretary to China

U.S. Treasury Secretary Janet Yellen engaged in talks with Chinese Premier Li Qiang on Sunday, highlighting the importance of constructive dialogue in stabilizing the relationship between China and America, two of the world’s economic powerhouses.

During their meeting in Beijing, Janet Yellen emphasized the significance of having difficult conversations, asserting that such exchanges have contributed to placing bilateral relations on a more solid foundation over the past year.

In response, Premier Li emphasized the necessity for mutual respect and partnership between the United States and China, characterizing their interactions as making “constructive progress.”

Janet Yellen underscored the shared responsibility of both nations to manage their intricate relationship responsibly, as she addressed concerns regarding China’s excessive factory capacity, particularly in industries like electric vehicles (EVs) and clean energy products.

The U.S. Treasury highlighted Yellen’s discussions on industrial overcapacity and its potential impact on American workers and firms.

Yellen’s visit to China marks her second within a span of nine months, with her previous trip aimed at easing tensions and normalizing economic relations.

The recent talks between U.S. President Joe Biden and Chinese President Xi Jinping, along with military discussions between both countries, further signify efforts towards managing bilateral tensions.

In addition to her meetings with top Chinese officials, Yellen also engaged with local leaders and academia during her visit.

In Guangzhou, discussions with Vice Premier He Lifeng centered on launching a dialogue focused on achieving balanced growth, with Yellen advocating for a level playing field to safeguard U.S. interests.

However, China’s rapid growth in industries such as EVs has led to concerns about excess manufacturing capacity. Despite these concerns, China continues to invest in cutting-edge technologies, challenging U.S. firms in areas where they traditionally hold advantages.

Chinese state media have pushed back against Yellen’s message on excess capacity, cautioning against protectionist policies and advocating for mutually beneficial cooperation.