[Asia Economy New York=Special Correspondent Joselgina] Janet Yellen, the U.S. Treasury Secretary overseeing economic policy, will soon visit China. Following a face-to-face meeting with Chinese Vice Premier Liu He in Switzerland, there is growing anticipation that the recently deteriorated U.S.-China relations over economic issues in recent years may reach a turning point. Next month, U.S. Secretary of State Tony Blinken is also scheduled to visit China.
The Wall Street Journal (WSJ) reported on the 18th (local time) that the U.S. Treasury announced this visit plan after the meeting between Secretary Yellen and Vice Premier Liu. The two sides held talks in Zurich that morning and reached a consensus to communicate well and manage various conflicts arising in the economic sector. This meeting took place as Secretary Yellen stopped by Switzerland before her Africa tour to meet Vice Premier Liu, who was attending the World Economic Forum Annual Meeting (WEF, Davos Forum). This was the first face-to-face meeting between the two officials overseeing their respective countries' economic policies.
At the meeting, they agreed to cooperate on the common challenge of climate change response but failed to narrow differences on trade and investment issues. However, they agreed on the need for sincere communication regarding economic issues. Early in the meeting, Secretary Yellen emphasized, "There are points where we disagree," but added, "Misunderstandings arising from lack of communication should not unnecessarily worsen the economic and financial relations between the two countries." Vice Premier Liu also stated in his opening remarks, "China and the U.S. must manage their differences and prevent competition between the two countries from leading to conflict."
Major foreign media evaluated that the two economic leaders have begun diplomatic efforts in earnest to ease tensions heightened by Taiwan and the COVID-19 pandemic. The Treasury Department also stated in a post-meeting release, "Both sides exchanged views on macroeconomic and financial conditions through candid, substantive, and constructive dialogue. Both agreed on the importance of enhancing communication between the U.S. and China on macroeconomic and financial issues for the proper functioning of the global economy."
The Treasury confirmed that not only will Secretary Yellen visit China, but Chinese officials will also visit the U.S. soon. WSJ reported that Vice Premier Liu is expected to step down from his position in March, and the successor has not yet been decided. The Treasury’s decision not to disclose specific details of Secretary Yellen’s China visit schedule is also analyzed to be related to this situation.
During the meeting, Secretary Yellen and Vice Premier Liu focused on economic outlooks for both countries and reportedly avoided public discussions on policy disagreements. During breaks, they held one-on-one conversations, and sensitive issues including trade were discussed privately, according to a senior Treasury official. Major foreign media expect that sensitive topics such as U.S. semiconductor export restrictions to China and changes in China’s economic policies following President Xi Jinping’s re-election were likely on the table.
Additionally, U.S. officials mentioned debt relief issues for developing countries such as Zambia. Secretary Yellen will embark on an Africa tour immediately after the meeting, visiting Senegal, Zambia, and other countries.
Meanwhile, Secretary of State Blinken is scheduled to visit China on March 5-6 to meet with Qin Gang, China’s Foreign Minister. This visit is a follow-up to last year’s U.S.-China summit.
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