Despite issues that remain between the U.S. and China, Yellen sought to emphasize that there is room for the superpowers to work together on fighting terrorism, drug trafficking, and financial crimes, especially amid the surge in popularity of cryptocurrencies. Photo by Bonnie Cash/UPI
Dec. 15 (UPI) — Treasury Secretary Janet Yellen on Thursday discussed strategies for the United States to strengthen economic ties with China following a year of rancor between the world powers.
Despite issues that remain between the superpowers, Yellen sought to emphasize that there is room for the U.S. and China to work together on fighting terrorism, drug trafficking, and financial crimes, especially amid the surge in popularity of cryptocurrencies.
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Yellen gave the remarks during a talk at the U.S-China Business Council’s 50th Anniversary Dinner in Washington, as part of a broader effort by the administration to reengage with Beijing after months of tensions.
“Continuing to stabilize our relationship to prevent escalation won’t make news,” she said. “But our economies, our people — and, again, also economies and people around the world — will be safer and more secure.”
The gathering served to build on Yellen’s visit to China in July when the Treasury Department launched new economic commitments with the communist government.
“This is what it means for the U.S. and China to build and responsibly manage our relationship,” she said, adding that she would visit China again before the end of her term.
In the speech, Yellen called attention to President Joe Biden‘s talks with President Xi Jinping on the sidelines of the Asia Pacific Economic Cooperation summit in San Francisco last month, as well as a previous meeting between Biden and Xi in Indonesia in November last year, which had led to more open communications with China in recent months.
In November, Yellen also met with her Chinese counterpart, Vice Premier He Lifeng, to discuss lingering differences between the world’s two biggest economies, such as market access, as the governments try to reach compromises on several fronts that threaten to upset relations again.
Yellen acknowledged the history of acrimony beneath the surface of the superpowers, while both nations maintained tit-for-tat punitive measures along the supply chain that ultimately serve to raise prices on consumers or cause panic on financial markets.
The United States has also taken actions to limit China’s involvement in the manufacturing of not only its critical infrastructure but that of its allies, while also restricting Beijing’s access to U.S.-made technology, citing national security concerns.
At the same time, Beijing has enforced retaliatory measures against many U.S. companies operating in China.
Yellen emphasized Washington’s commitment to continue exerting pressure on Beijing regarding how it handles its finances, noting that China makes up nearly 20% of the global economy, which highlighted the impact of Beijing’s policy decisions on the world stage.
Yellen also said collaboration with Beijing was now one of the administration’s highest priorities, particularly in partnership to address climate change, but also as China was dealing with growing debt, and a struggling housing market as many young Chinese were also struggling to find jobs.
“Understanding China’s plans, especially how China intends to respond to challenges with local government debt and the real estate market or how it might react if unexpected weaknesses in its economy should arise, is crucial for those of us charged with policymaking in the United States,” she said.
