Beijing – The recent visit of U.S. Treasury Secretary Janet Yellen and her team to China has sparked a lot of interest and speculation, as the two countries continue to navigate through the complex dynamics of their relationship. Yellen and her team spent a week in China, engaging in discussions and negotiations on various important issues between the world’s two largest economies. Let’s take a look at what was discussed, what progress was made, and where things stand now.
One of the main topics of discussion during the meetings was the issue of unfair trade practices. The Biden administration has expressed concerns about China’s economic model and trade practices, which they believe put American companies and workers at a disadvantage. Yellen emphasized the need for more balanced economic growth and addressed the dangers of one country dominating the global market through highly subsidized production. The two sides agreed to hold intensive exchanges on this matter, showing a willingness to find a solution. Yellen acknowledged that it may take time, but their message was clear – this is an important issue that needs to be addressed.
Another important area of discussion was the issue of money laundering and related crimes. The U.S. Treasury and the Chinese central bank agreed to work together to combat money laundering in their respective financial systems. This cooperation is crucial, especially in light of the fact that many of the precursor chemicals used to make the dangerous drug fentanyl are coming from China into the U.S. By exchanging information and working together, they hope to disrupt this flow and prevent further harm. Yellen emphasized the commitment of the Treasury to use all available tools to counter this threat and announced the formation of a new group to specifically address this issue.
The issue of TikTok, the popular social media app owned by Chinese parent company ByteDance, was also raised during the talks. While the Chinese have raised concerns about the U.S. efforts to ban the app, there was little progress on the matter. Yellen expressed her support for the administration’s efforts to address national security concerns related to sensitive personal data and acknowledged the need to find a way forward. This issue remains unresolved, but both sides seem open to finding a solution.
On the second day of her trip, Yellen and the Chinese announced an agreement to work closely on issues related to financial stability. This includes holding exercises to simulate a failure of a large bank in either country and coordinating efforts to prevent any potential catastrophic effects on the global financial system. Yellen stressed the importance of communication and cooperation between American and Chinese financial regulators, comparing it to the need for a hotline between military leaders in times of crisis. This collaboration is crucial in ensuring the stability of the global economy.
Apart from the important discussions and negotiations, Yellen’s visit also drew attention for a different reason – her love for food. Yellen, who is known to be a foodie, became somewhat of a celebrity in China after her previous visit where she tried mushrooms that can have psychedelic effects. This time, she dined at popular restaurants and even had lunch with Beijing Mayor Yin Yong. Her last evening in China was spent at Jing-A Brewing Co., where she ordered a Flying Fist IPA, highlighting her appreciation for American hops.
In conclusion, Yellen’s visit to China may not have resulted in any major breakthroughs, but it was a step in the right direction. Both sides showed a willingness to engage and find solutions to important issues that affect not just their countries, but the global economy as well. The talks may have just scratched the surface, but it is a positive sign that the world’s two largest economies are willing to work together and address their differences. As Yellen said, these issues may not be solved in a day or a month, but the important thing is that the dialogue has begun. Let us hope that this marks the beginning of a more positive and cooperative relationship between Beijing and Washington.
