U.S. Treasury Secretary Janet Yellen is set to arrive in China for a second trip since the summer, in an effort to increase high-level communication between the U.S. and China. The visit comes as the two countries remain in a tense relationship, with U.S. Secretary of State Antony Blinken also scheduled to visit China later this year. Yellen emphasized the importance of ongoing and deepening dialogue to prevent misunderstandings that can arise from lack of communication.
Yellen’s itinerary includes meetings with various Chinese officials in Guangzhou, the capital of Guangdong province, and Beijing. The topics of discussion will include unfair trade practices and the global economic consequences of Chinese industrial overcapacity. China has faced criticism for subsidizing its manufacturing capabilities, allowing its companies to undercut competitors in other countries. This has led to growing tensions, with the EU expressing concerns that trade tensions with China will escalate.
Guangdong is China’s top province in terms of the value of exports, with nearly 5.4 trillion yuan ($750 billion) in manufactured products exported last year. The province is focused on improving productivity by developing sectors such as new energy storage, biomanufacturing, and commercial aviation. Yellen’s visit will provide an opportunity to discuss ways to address these trade challenges and promote fair competition in the global market.
In addition to trade issues, Yellen will also discuss expanding bilateral cooperation on countering illicit finance during her meetings in China. This cooperation is aimed at combating criminal activities such as drug trafficking and fraud. Yellen will also address financial stability, climate change, and debt distress in developing nations. The discussions will include Vice Premier He Lifeng, with whom Yellen is set to meet again at the upcoming International Monetary Fund and World Bank Group spring meetings in Washington, D.C.
Overall, Yellen’s trip to China is part of an effort to improve communication and cooperation between the U.S. and China on a range of economic and financial issues. The meetings are expected to touch on trade practices, industrial overcapacity, financial stability, climate change, and combating illicit finance. By engaging in dialogue and addressing these issues, the two countries aim to reduce misunderstandings and tensions in their relationship. Yellen’s visit to Guangzhou and Beijing will provide an opportunity to discuss these important topics with Chinese officials and work towards finding solutions that benefit both countries.
