U.S. Treasury Secretary Janet Yellen is set to meet with Chinese officials during a four-day trip to China. This visit marks her second trip to the country since the summer, highlighting the efforts of the U.S. and China to enhance high-level communication in a tense relationship. The U.S. Secretary of State Antony Blinken is also expected to visit China later in the year. Yellen emphasized the importance of ongoing and deepening dialogue at all levels to avoid misunderstandings that may arise from lack of communication.
Yellen’s itinerary includes meetings in the southern city of Guangzhou, the capital of China’s export-heavy province of Guangdong, as well as the national capital of Beijing. Her scheduled meetings involve key Chinese officials and experts, signaling a focus on various economic aspects. Yellen is expected to delve into discussions on unfair trade practices and the global economic impact of Chinese industrial overcapacity.
China has been under increasing global scrutiny for its manufacturing capabilities, particularly in the context of subsidies and policy support provided to Chinese companies. The emphasis on these capabilities has enabled Chinese manufacturers to sell products such as solar panels at significantly lower prices than manufacturers in other countries. This has raised concerns among international stakeholders, with predictions of escalating trade tensions between China and the European Union.
Guangdong stands out as the top province in China in terms of export value, showcasing the province’s significant role in China’s export landscape. With a focus on equipment manufacturing, Guangdong exported nearly 5.4 trillion yuan ($750 billion) in manufactured products last year. The province is dedicated to enhancing productivity and is exploring opportunities in sectors like new energy storage, biomanufacturing, and commercial aviation.
Apart from trade-related discussions, Yellen’s meetings in China will cover a wide range of topics, including bilateral cooperation on countering illicit finance. The focus on combating criminal activities such as drug trafficking and fraud reflects the shared efforts between the U.S. and China. Additionally, discussions on financial stability, climate change, and debt distress in developing nations are expected to feature prominently in the dialogue between the two countries.
Yellen’s meetings in China will also provide an opportunity to strengthen partnerships with key Chinese officials, including Vice Premier He Lifeng. This will be their third meeting, underscoring the importance of continued engagement at various international forums. The collaboration between the U.S. and China on economic and financial issues is crucial for addressing global challenges and fostering stability in the international economic landscape.