Washington, (Asian independent) US Treasury Secretary Janet Yellen has termed her China visit as “highly constructive” with very substantive series of meetings with state officials as Washington sought to stabilise its relations with Beijing after months of escalating trade tensions even as America struggled to settle a mounting one trillion trade imbalance with the Asian giant.
The timing of the Treasury Secretary’s four-day visit to Beijing came under the shadow of the high profile visit of Indian Prime Minister Narendra Modi to Washington leading to defence deals, supply of jet engines to combat aircraft by GE, drones supply, and strengthening of defence ties to what US media described, as an effort to counter China’s intimidating postures on the South China Sea.
“I do think my trip has been successful in forging those relationships and creating the opportunity for a deeper set of more frequent contacts at our staff levels,” Yellen said on Sunday.
Her visit focused on the state of the global economy, export controls.
The high stakes trip to China, the US media described as part of ongoing efforts to stabilise US-China relations after months of escalating tensions.
Yellen’s visit also quickly followed Secretary of State Antony Blinken’s trip to Beijing last month.
Poltical observers in the know claim that these meetings of Yellen and Blinken are prepping up a possible high profile visit of President Joe Biden to Beijing and meeting his Chinese counterpart Xi Jinping.
“We have a new team on the economic side in Beijing, that it’s important to establish person-to-person relationships, and to open ongoing channels of communication, where concerns can be aired and discussed,” Yellen told CBS News on Sunday.
“And I do think my trip has been successful in forging those relationships and creating the opportunity for a deeper set of more frequent contacts at our staff levels.”
Media reports described Yellen’s task in Beijing as being complex as it raised a number of concerns, such as national security and the Chinese intimidation of select US companies.
Yellen sought Chinese cooperation on issues ranging from climate change to debt distress.
She said her purpose was to make sure the two nations do not engage in “unintended escalatory actions that will be harmful to our overall economic relationship with one another”.
Paradoxically, on the eve of Yellen’s visit to Beijing, China slapped export curbs on chipmaking metals and related components and compounds.
The Chinese Commerce Ministry however claimed that it gave the US and Europe an advance notice of the impending curbs.
In October last year, the US had initiated new rules aimed at shrinking or cutting off of key chips and semiconductor tools to China.
The semiconductor bill passed by Congress was also a step in raising production of chips in the US and slashing Chinese imports.
Expressing concerns over Chinese export controls, Yellen wondered if it contrasted with the US’ decision.
The US’ actions “are narrowly targeted to address national security concerns”, but one could not fathom why the Chinese export controls were implemented.
Yellen pointed to the enormous market China enjoyed and said it was a significant share of the global economy and the US was interested in ensuring that American business and workers in the industry could profit from that, CNBC reported.
