Yellen urges US-China cooperation on economy, climate By Reuters

Written by Andrea Shalal

BEIJING (Reuters) – U.S. Treasury Secretary Janet Yellen on Saturday urged closer communication between China and the United States to improve economic decision-making, and called on China to join global initiatives to help poor countries tackle climate change.

Despite bilateral tensions, record high US-China trade last year showed there was “ample room” to engage in trade and investment, and it was crucial to focus on areas of mutual interest and address differences through dialogue, Yelin told Chinese Vice Premier He. living. at the beginning of the meeting.

The talks lasted about five hours, followed by a formal dinner, according to a Treasury official.

Chinese state media described the meeting as “in-depth, frank and pragmatic”. The Treasury Department said the meeting was “frank, constructive and inclusive”.

Yellen is scheduled to hold a press conference in Beijing early Sunday.

China’s official news agency Xinhua said the talks were “constructive”, but the Chinese side expressed concern about US sanctions and restrictive measures against China.

Xinhua said China also believes that popularizing the concept of national security is not conducive to normal economic and trade exchanges.

The Treasury said Yellen also quoted that “even when the United States and China have disagreements, it is critical that the two countries find ways to work together on issues of mutual — and global — concern, including the debt crisis in low-income and emerging economies.” Climate Finance”.

The Treasury Department said Yellen also met with the Communist Party’s People’s Bank of China Chairman Pan Gongsheng on Friday, to discuss global macroeconomic and financial developments, including the disproportionate impact of recent economic shocks on low-income countries.

Yellen’s visit through Sunday is Washington’s latest attempt to mend relations between the world’s two largest economies, which are beset by problems from Taiwan to technology that have drawn allies into their rivalry, taking a toll on businesses and trade relations.

Like US Secretary of State Antony Blinken, who visited last month for the first time in Joe Biden’s presidency, Yellen is seeking a delicate balance between reconciliation and continuing to push Beijing to halt practices that Washington says harm American and Western businesses.

Both sides have downplayed expectations of breakthroughs, while applauding the opportunity for frank face-to-face diplomacy.

“Amidst a complex global economic outlook, there is an urgent need for the two largest economies to communicate and exchange views on our responses to various challenges,” Yelin told He, the newly appointed Chinese economic czar.

Doing so, she said, could “help both sides fully understand the global economic outlook and make better decisions to strengthen our economies.”

Meanwhile, Yellen reiterated that Washington wants to ensure healthy competition through a “fair set of rules” that would benefit both countries over time.

Meeting her at the Diaoyutai Prefectural Guesthouse where foreign dignitaries are often received, he said he was willing to work with Yilin.

Yellen told a group of economists on Saturday that she was “in Beijing at this critical time because, despite all the differences between our two countries, I think President Biden and I believe it’s in the best interests of our people that we put our relationship in the best interest of pursuing and maintaining open and honest lines of communication.” “.

“I strongly believe that the relationship between our two countries is rooted in the strong ties between the American and Chinese people. It is important that we continue to nurture and deepen those relationships, especially as China reopens after three years of COVID lockdown.”

Learn about the China Expressway

As the United States seeks to re-engage at all levels, Beijing has repeatedly asked Washington to match words with action, citing continued US moves to limit China’s access to technologies including semiconductors.

Beijing also refused to resume bilateral military relations, while tariffs imposed on Chinese products during the trade war under Biden’s predecessor, Donald Trump, remained the same.

China this week abruptly announced export controls on two minerals widely used in semiconductors and electric cars in the name of protecting its national security and interests.

However, recently appointed Premier Li Qiang left the door open for further dialogue, urging Yellen on Friday to “meet China halfway” as the two sides inject “positive energy” into bilateral relations.

Despite the talk of economic separation between the United States and China, which both countries oppose, the data shows a fundamentally strong trade relationship, with mutual trade reaching $690 billion last year.

Yellen said the United States will continue to directly express concerns about specific economic practices, and take targeted actions to protect its national security.

It urged China not to allow any differences “to lead to misunderstandings, especially those caused by lack of communication, which could unnecessarily aggravate our bilateral economic and financial relationship.”

Yelin told government officials and climate experts on Saturday that China has the potential to help the world confront the “existential threat” of climate change.

She told a roundtable meeting that Beijing and Washington should take the lead in helping poor countries achieve their climate goals and deal with the impact of climate change.

She said cooperation in climate finance is a “critical” responsibility of “the world’s two largest emitters of greenhouse gases and the largest investors in renewable energy”.

Classified as a developing country by the United Nations, China has long said that it is the responsibility of developed countries to help poor countries pay for climate change.

But Beijing says it can contribute to “losses and damages” due to climate change on a voluntary basis.