US Treasury Secretary Janet L Yellen concluded her visit to Beijing without any announced progress or agreements to address the ongoing tensions between the two countries, as The New York Times reported.
The report noted that despite engaging in ten hours of meetings over two days, the economic strain between the US and China is unlikely to ease.
Both Yellen and Chinese officials maintained their positions on key policy issues, leaving the potential for further conflicts in trade, investment, and technology.
The US-China relationship has been deteriorating for years due to significant points of contention, including the conflict in Ukraine, the presence of a Chinese spy balloon over US territory that was shot down, and escalating trade restrictions between the two countries, according to the NYT report.
Yellen’s visit concluded on Sunday and followed US Secretary of State Antony J Blinken’s visit a few weeks prior.
In July, John Kerry, the special presidential envoy for climate change, will also travel to China to resume global warming negotiations.
During her visit, Yellen clarified that the Biden administration has serious concerns about several of China’s business practices, including its treatment of foreign companies and perceived attempts at economic coercion.
China’s official news agency, Xinhua, reported on Yellen’s visit, describing the talks as constructive but also restating areas of dispute.
China reiterated its opposition to the Biden administration’s focus on protecting American national security through trade restrictions.
Yellen also discussed Chinese officials’ concern, including the tariffs imposed on Chinese imports by the Trump administration, which are still in effect.
While Yellen has criticized tariffs as ineffective, she also reiterated the current administration’s stance that no decisions regarding the levies will be made until the completion of an internal study.
Chinese officials and experts are also worried about the administration’s efforts to restrict China’s access to certain technologies, potentially impeding the growth of industries such as artificial intelligence and quantum computing.
Yellen stated on Sunday, “I explained that President Biden is examining potential controls on outbound investment in certain very narrow high technology areas,” adding that these restrictions should not significantly impact the investment climate between the two countries.
Since 2015, China has implemented its own extensive restrictions on foreign investment, encouraging businesses and households to invest abroad in strategic industries like cybersecurity, heavy manufacturing, and aircraft production, rather than speculating in foreign real estate, according to NYT.
Wu Xinbo, head of international studies at Fudan University in Shanghai, cautioned that the Biden administration’s policies toward China must also change for Yellen’s visit to impact bilateral ties significantly. “So far, we haven’t seen any sign that Biden will rethink his economic policy toward China,” Wu Xinbo said.
Despite Yellen’s visit, many in China remain skeptical, questioning the extent to which US policies are truly driven by national security concerns, according to The New York Times.
