Yellen claimed that "no final decisions" had been made regarding that course of action, but she assured that any future limits would be "highly targeted" at a select few industries

US Treasury Secretary's Visit to China

Following a crucial visit to China to convince officials that the US won't impede its biggest economic rival, US Treasury Secretary Janet Yellen adopted a hopeful but realistic tone.

The Federal Reserve Chair, Janet Yellen, made her remarks at a press conference that concluded a four-day visit to Beijing, which she had billed as an effort to rekindle relations between the world's two largest economies. With both sides limiting exports essential to emerging technology, tensions between Washington and Beijing have escalated into a tit-for-tat trade war.

The head of the US Treasury Department emphasised the advantages of trade with China and claimed to have emphasised to Beijing's sceptic authorities that "diversifying" supply chains in specific sectors wasn't the same as decoupling.

Yellen spoke with Chinese officials for ten hours during her visit, describing the meetings as "direct, substantive, and productive" and claiming they helped bring US-China relations to a "surer footing." Since the appointment of China's new economic team, she spent around half of that time talking with vice premier He Lifeng, her counterpart. She discussed the US-China relationship more extensively with Premier Li Qiang during a brief meeting.

According to Chinese official media, Yellen also met with China's Finance Minister Liu Kun and discussed the economies of the two nations as well as possible solutions to the world's problems.

The visit, according to a senior Treasury official, was fruitful and gave the US side a chance to learn about the Chinese team's perspective on their economy. The person noted that it was instructive to observe the interactions between the new leaders, who appeared to have known President Xi Jinping for some time.

In Beijing, Yellen had a challenging task. She aimed to express her worries about Chinese economic practices while urging greater collaboration and involvement between the two countries, particularly on global issues like climate change and the debt crisis in developing countries.

It was the first significant test of a strategy she laid out in April with the aim of defending and securing US national security while not attempting to economically impede China.

Yellen brought up China's "non-market" practices and "coercive actions" against American corporations during her visit, and she cautioned Chinese businesses against financially supporting Russia's conflict in Ukraine. Regarding US sanctions and other restrictive measures, China underlined its worries.

Despite these stress points, Yellen's main point was that both parties should manage their conflict according to a fair set of norms. She stated on Sunday that she and President Biden do not view the relationship between the US and China through the lens of a great power struggle. We think there is enough room in the world for both of our nations to prosper.

On CBS's Face the Nation, Yellen stated that she sees a way for the US to lower inflation while also maintaining a "healthy labor market," however the possibility of a recession is "not completely off the table."

Her visit to China was a component of a larger initiative by President Joe Biden's administration to improve ties with the United States' principal geopolitical adversary and expand high-level dialogue.

Yellen met with Pan Gongsheng, who will soon take over as governor of China's central bank, as part of that assignment. By referring to Pan as the "head" and "acting governor" of the People's Bank of China—a designation that China hasn't used—the Treasury created doubt about whether Pan had already gotten that promotion.

After Secretary of State Antony Blinken's trip to China in June, Yellen is the second member of Biden's cabinet to visit the country in the past three weeks. She worked to focus de-risking efforts and pinpoint "unproblematic" trade prospects, in contrast to Blinken, who in Beijing swore to defend "our critical technologies so that they aren't used against us."

Later this month, US climate envoy John Kerry is scheduled to travel to China for discussions on global warming, a subject of shared concern where Beijing and Washington may find more common ground.

In a Friday editorial, the Communist Party-backed Beijing Daily newspaper expressed skepticism over whether or not such talks would enhance relations.

An anonymous author from a study center within the Central Committee's International Liaison Department observed that "every time there emerges some positive signs when the two sides restart dialogue, they're extinguished by Washington's suppression and containment of China in a blink of an eye."

The following phase of the partnership could be imminent. To further limit Beijing's access to cutting-edge technology, Biden's team is drafting an executive order that would limit US outbound investment in China.

Yellen claimed that "no final decisions" had been made regarding that course of action, but she assured that any future limits would be "highly targeted" at a select few industries. Regarding her Chinese counterparts, she continued, "I wanted to allay their fears that we would do something that would have broad-based impacts on the Chinese economy."

Vice Premier According to the official Xinhua News Agency, he cautioned the United States on Saturday that "generalizing national security" was not favorable to economic exchanges.

Yellen's visit comes as China strives to lure more foreign investment following years of Covid controls and regulatory shocks, as well as worsening geopolitical ties with the West. Despite these tensions, the Treasury Secretary told CBS that American businesses still see "enormous opportunities" in China.

According to Jake Werner, East Asia research scholar at the Quincy Institute, Yellen's characterization of Chinese expansion as beneficial to the world economy rather than a threat was "essential to putting the dangerously deteriorating US-China relationship on a sound foundation."

On Sunday, as her trip came to an end, Yellen expressed confidence that the two could continue to have a better working relationship.