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Top Biden administration officials played down hopes for immediate easing of tariffs against China on Sunday even as they signaled scope for a more constructive relationship with Beijing.
US Treasury Secretary Janet Yellen, speaking ahead of a meeting of G20 finance ministers and central bank governors in India, said she was keen to work more closely with China on areas of “mutual interest” after a four-day trip earlier this month. Put the relationship on “firm grounds,” he said.
However, in a press conference following her remarks, she stressed that while it would be helpful to identify ways to de-escalate tensions over time, it was “premature” for easing trade restrictions.
“The tariffs were put in place because we were concerned about unfair trade practices on the part of China and our concerns about those practices remain. They weren’t really addressed, and China imposed its own retaliatory tariffs,” she told reporters.
“This is probably an area where we could make progress over time, but I would say it’s too early to use this as a de-escalation zone, at least for the time being.”
The United States completes a four-year review of trade tariffs.
Jake Sullivan, the White House national security adviser, on Sunday expressed frustration at what he called a “self-defeating move” by China to impose export controls on components essential to manufacturing computer chips starting Aug. 1.
“We’re not looking to end all trade with China, what we’re looking to do is put a small yard of restrictions on technology that has national security implications, and a high fence around that yard,” he told CBS News.
“That’s what we’ll continue to do, and China, of course, will have to make its own decisions.”
The Biden administration is considering ways to prevent US investment from aiding the Chinese military. During her trip to Beijing, Yellen said those controls would be “very targeted and clearly targeted at a few sectors where we have specific national security concerns.”
Sullivan said Sunday that he expects Chinese President Joe Biden and Xi Jinping to speak again “at some point.”
“It is a large, complex and difficult relationship that must be carefully managed and can only be done effectively from the top.”
Washington has increased its diplomatic outreach to Beijing in recent weeks, with John Kerry, the presidential climate envoy, becoming the third cabinet member to go to China.
Kerry, who arrived on Sunday, is due to meet his Chinese counterpart Xie Zhenhua and other officials over three days of meetings.