U.S. Treasury Secretary Janet Yellen Sets Course for Highly Anticipated Visit to China

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U.S. Treasury Secretary Janet Yellen is scheduled to undertake a significant journey to China this week, intending to foster improved relations between the two superpowers, according to an anonymous senior Treasury official on Sunday.

Yellen, a vocal critic of any potential economic decoupling from China, has often expressed a desire to visit the country. She believes that despite the ongoing tensions over geopolitics and economic development, both nations must find a way to coexist peacefully. During her visit, which lasts until July 9, she will meet with Chinese officials, U.S. firms operating in China, and Chinese citizens.

Her visit’s main objective is to enhance communication frequency and depth between the two nations, the official stated. While some areas of common interest can benefit from Yellen’s initiative, it’s understood that one trip alone cannot resolve all significant disagreements.

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A recent setback in the relations occurred when President Joe Biden labeled Chinese President Xi Jinping a “dictator” at a fundraiser earlier in June. While the comment drew loud protests from China, Biden has been unapologetic about his candid remarks regarding China.

Tensions have also risen over a downed Chinese surveillance balloon, U.S.-imposed restrictions on China’s access to advanced computer chips, and ongoing uncertainties regarding Taiwan’s status and security. Despite these concerns, Biden assured attendees at a California fundraiser that the U.S. is prepared to challenge China’s financial and technological aspirations.

Yellen’s visit will follow on the heels of Secretary of State Antony Blinken’s own two-day Beijing trip in June, the most senior-level meeting in China in the last five years. Despite agreeing to stabilize U.S.-China ties with Xi, the two countries failed to reach an agreement regarding military communication. Treasury officials have yet to disclose who Yellen will meet, excluding Xi.

Yellen’s focus during her visit will be on global economic stability and challenging China’s support for Russia’s ongoing invasion of Ukraine. China’s proximity to the Kremlin, neutrality claims in the conflict, joint military exercises, and regular state visits with Russian officials have raised eyebrows.

U.S. officials, however, remain hopeful that U.S.-China relations won’t further deteriorate.

Earlier this year, Yellen met with her former Chinese counterpart, Vice Premier Liu He, in Switzerland. She made a compelling argument for collaboration between the two countries on urgent global issues during her Johns Hopkins University speech in April, while also supporting economic restrictions on China to safeguard U.S. national security.

Hints of a possible refreshed relationship have emerged recently. A deal to restructure Zambia’s debt was brokered at a Paris summit on global finance last week. The agreement may offer a blueprint for China’s future dealings with other indebted nations and demonstrates China’s willingness to negotiate with other G20 nations.

However, other tensions remain. Issues such as a Chinese surveillance balloon spotted over sensitive U.S. areas in February and data security concerns with Chinese-owned social media firm TikTok have caused further strain. Last year, the Biden administration imposed export controls limiting China’s access to advanced chips, potentially utilized in weaponry, human rights abuses, and military logistics improvements.

Amid these tensions, Yellen’s visit coincides with Biden contemplating an executive order to restrict U.S. companies’ overseas investments, a measure intended to curb China’s acquisition of militarily useful technologies.

Nevertheless, the economies of both countries are intertwined due to trade. Yellen, in her address at Johns Hopkins, underlined that a full economic separation would have disastrous consequences for both nations and global stability.

Last year, China exported more than $536 billion worth of goods to the U.S., while the U.S. shipped $154 billion in goods to China, according to the Census Bureau.

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This report included contributions from Colleen Long, a writer for Big Big News.

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