US and China Reaffirm Economic Ties Despite Disagreements

The United States and China have reiterated their commitment to maintaining and strengthening economic ties, as US Treasury Secretary Janet Yellen held a series of meetings with leaders in Beijing. On the second day of her four-day visit to the Chinese capital, Yellen and China’s finance minister pledged that the two countries would not seek to weaken their economic ties.

Yellen discussed the need for cooperation with Chinese Premier Li Qiang, while raising concerns over Beijing’s treatment of US companies operating in China. The Chinese finance ministry called Yellen’s visit a “concrete measure” to advance a November agreement between US President Joe Biden and his Chinese counterpart, Xi Jinping, to improve relations.

Yellen defended “targeted actions” taken by the US, which has sought to curb China’s access to critical technologies. She appealed for “healthy economic competition” and “fair set of rules” that would benefit both countries in the global economy.

Recent data showed that the US-China trade relationship is fundamentally solid with two-way trade hitting a record $690bn last year. Yellen’s visit proceeded despite a recent diplomatic flare-up between Washington and Beijing sparked by Biden’s offhand comments referring to Xi as a “dictator”.

Blinken had previously been set to visit China in February, but that trip was delayed after a Chinese surveillance balloon drifted over the US and was subsequently shot down.Yellen’s visit was seen as a positive step towards improving relations between the two countries.