Yellen urges US and Chinese companies to cooperate despite geopolitical tensions

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Despite security tensions, there is “ample room” for US and Chinese companies to boost trade and investment, Janet Yellen says during a visit to Beijing aimed at reducing friction between the two powers.

Speaking at the Diaoyutai State Guest House in Beijing before meeting Chinese economic czar He Lifeng on Saturday, the US Treasury secretary said a “broad part” of the two countries’ economies should be able to interact in ways that “both governments be undeniable”. ,

“The fact that we set a record for bilateral trade in 2022, despite recent tensions, shows that there is ample room for our companies to engage in trade and investment,” Yellen said.

As she addressed He and his economic team in a cavernous room of the guest house, Yellen reiterated her call for Beijing and Washington to increase communication, including on macroeconomic and financial stability.

“Amid a complex global economic outlook, there is an urgent need for the two largest economies to communicate closely and exchange views. , , Different challenges,” Yellen said.

Yellen was visiting Beijing just weeks after Secretary of State Antony Blinken became the first Biden administration cabinet official to visit China. The visits are part of an effort to stabilize ties, which have plunged to their lowest level in decades. An earlier effort was derailed after China flew a suspected spy balloon over North America.

Yellen has tried to walk a fine line, calling for better communication while also urging Beijing not to overreact to security measures the Biden administration has put in place to block the use of US technology to help the Chinese military. Raised for

“The United States will take targeted action to protect our national security. While we may disagree on these actions, we must not allow that disagreement to lead to misunderstandings, especially those arising from lack of communication, which can unnecessarily vitiate our bilateral economic and financial ties,” she said. Said.

Earlier on Saturday, Yellen met with Chinese climate finance experts. At their meeting, he said the US and China – the two biggest emitters of greenhouse gases in the world and the biggest investors in renewable energy – have “a joint responsibility.” , , to show the way”

“If China supported existing multilateral climate institutions like the Green Climate Fund and the Climate Investment Fund, along with ours and other donor governments, we could have a greater impact than we do today,” Yellen said.

John Kerry, President Joe Biden’s special envoy for climate change, is expected to be the next senior US official to visit China.

Yellen’s meeting with him is widely considered the most important of her four-day visit.

In addition to being the longest meeting, it gave his team an opportunity to learn about President Xi Jinping’s protégé He, who is relatively unknown outside China. He has kept a low profile in Chinese state media coverage since taking up the role in March.

He, who was appointed as the Vice-Premier, succeeded Liu He as China’s Economic Emperor. While Liu was respected overseas for overseeing technocrats at the central bank and finance ministry, his experience lay in the National Development and Reform Commission, in charge of state planning.

He has advocated greater openness to foreign investment, but there are concerns that as a Xi loyalist he is unlikely to push back against Beijing’s tendency to tighten more control in the hands of state-owned enterprises.

The meeting was also attended by Pan Gongsheng, the incoming head of China’s central bank.