Yellen urges US-China cooperation on economy

US Treasury Secretary Janet Yellen urged closer communication between China and the United States on Saturday to improve economic decision-making and challenged China to join global initiatives to help poorer nations address climate change.

Despite bilateral tensions, record high US-Chinese trade last year showed there was “ample room” to engage in trade and investment, and it was critical to focus on areas of common interest and address disagreements through dialogue, Yellen told Chinese Premier He Lifeng at the start of a meeting that a Treasury official said lasted for five hours.

Yellen’s visit through Sunday is Washington’s latest attempt to repair ties between the world’s two biggest economies, battered over issues from Taiwan to technology that have drawn their allies into their rivalry, having an impact on companies and trade ties.

Like US Secretary of State Antony Blinken, who visited last month for the first time in Joe Biden’s presidency, Yellen is seeking a delicate balance between conciliation and continuing to push Beijing to halt practices Washington says are harmful to US and Western companies.

Both sides have downplayed expectations for breakthroughs, while hailing the opportunity for candid, face-to-face diplomacy.

“Amid a complicated global economic outlook, there is a pressing need for the two largest economies to closely communicate and exchange views on our responses to various challenges,” Yellen told He, China’s recently appointed economy czar.

Doing so could “help both sides more fully understand the global economic outlook and make better decisions to strengthen our economies,” she said. At the same time, Yellen reiterated Washington wanted to ensure healthy competition with a “fair set of rules” that would benefit both countries.

Published in The Express Tribune, July 9^th, 2023.

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