US Treasury Secretary Janet Yellen concludes China trip
US Treasury Secretary Janet Yellen will conclude a state visit to China today.
Between April 4-9, Yellen visited the cities of Beijing and Guangzhou and met with senior-level Chinese officials, academics and American business executives. This is her second visit to China in nine months, in an another attempt to calm bilateral trade tensions.
Yellen warned Chinese leadership of supporting Russia and raised the issue of Chinese dumping of strategic goods on the American market, especially relating to green energy technologies, such as electric vehicles, solar panels and wind turbines. She noted that Beijing needed to shift its economic policy away from producing goods at overcapacity to flood the global market.
The US treasury chief’s nearly week-long visit is a sign of both sides wanting to minimize economic fallout from diplomatic spats and attempts at decoupling. Beijing has recently been keen to reassure the West that China is open for business again.
Chinese leadership, however, is unlikely to fundamentally shift its policy in the near term as it focuses on shielding its own economy from Western influences and seeks to dominate strategic supply chains. China’s Commerce Minister Wang Wentao recently called accusations of Chinese overcapacity as “groundless.” Furthermore, Beijing will likely wait for US elections in November to determine its path for a future relationship with Washington. Still, Yellen’s visit demonstrates the Biden administration’s commitment to continuing dialogue, despite ongoing disagreements.
