Scheduled next month, U.S. Treasury Secretary Janet Yellen is poised to embark on high-level talks in China, focusing on managing U.S.-China relations. This visit marks her first trip to China in nine months, coinciding with rising concerns in global markets about China’s industrial overproduction.
Politico reported on March 24th that Yellen will meet with high-ranking officials during her China visit. Her schedule is expected to include discussions with key Chinese economic figures, including He Lifeng, Vice Premier of the State Council, and Liu Kun, Minister of Finance.
Once more, Politico highlighted that Yellen’s forthcoming visit is a strategic move by the U.S. to address the escalating tensions in bilateral relations, notably in response to incidents like the reconnaissance balloon incident and the Taiwan Strait events of last year.
In a speech last December, Yellen underscored the significance of direct, high-level dialogues between the U.S. and China in responsibly navigating bilateral relations. She highlighted several key issues, including the need for transparency in China’s foreign exchange practices, collaborative efforts to address potential global financial crises, and cooperation to combat money laundering.
During her visit to China in July last year, the Chinese officials conveyed their concerns to the U.S. about tariffs imposed on China, investment restrictions on U.S. companies, and export controls and sanctions on Chinese firms through a collaborative working group established during her visit.
During this meeting between top economic officials from both nations, it is highly likely that discussions will revolve around concerns regarding Chinese companies’ overproduction to mitigate economic downturns and China’s ambitious plans for excessive export growth. Jay Shambaugh, Deputy Assistant Secretary for International Affairs at the Department of the Treasury, voiced apprehensions about China’s low-cost sales and overproduction during a meeting with Vice Premier He last month.
Given the Biden administration’s goal of handling U.S.-China relations smoothly before the November elections, the effectiveness of Yellen’s upcoming visit in achieving significant outcomes remains to be determined.
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