China Expresses Optimism Toward Yellen: "Our Concern Is Tariffs"

Chinese state media has emphasized the need to discuss pressing issues such as tariffs ahead of U.S. Treasury Secretary Janet Yellen's visit to China. They also expressed anticipation for Commerce Secretary Gina Raimondo's upcoming visit following Yellen's trip.

On the 3rd, China's state-run Global Times (GT) reported, "Secretary Yellen is scheduled to visit China this weekend to discuss macroeconomic and financial issues between the two countries," adding, "Although analysts have generally low expectations for bilateral relations, they believe some improvement is possible."

[Image source=Yonhap News]

Earlier, China's Ministry of Finance announced that Secretary Yellen would be the second U.S. cabinet member to visit China after Secretary of State Antony Blinken. Yellen is expected to meet with Chinese Vice Premier He Lifeng and Minister of Finance Liu Kun during her visit from the 6th to the 9th. It remains unknown whether she will meet Premier Li Qiang or President Xi Jinping. The U.S. Treasury also confirmed Yellen's visit in a statement, noting that she plans to discuss responsible management of bilateral relations, direct communication on areas of concern, and cooperation to address global challenges.

According to GT, Wu Xinbo, director of the Center for American Studies at Fudan University, said at a panel discussion at the World Peace Forum held in Beijing that "both sides will focus on macro issues related to China, the U.S., and the global economy," but emphasized, "Our main concern is tariffs." Wu pointed out, "The high tariffs imposed by the Trump administration have not been lifted to this day, and President Joe Biden has done nothing to reduce them."

Former Deputy Governor of the People's Bank of China and former Deputy Managing Director of the International Monetary Fund (IMF), Zhu Min, told GT, "The core issue is the U.S. withdrawal of additional tariffs on China," adding, "Trade is the cornerstone of Sino-U.S. economic relations, and tariff removal should be the first issue for both sides to discuss."

Secretary Yellen has recently expressed a critical view of the U.S. policy toward China summarized as "decoupling." On May 13, during a hearing before the House Financial Services Committee, she stated that maintaining relations with China is in the best interest of the U.S., warning that "decoupling (excluding China from industrial and supply chains) would be a big mistake." She also added that the U.S. would greatly benefit from purchasing cheaper Chinese goods.

GT also mentioned the necessity of Commerce Secretary Gina Raimondo's visit to China. Citing Wu Xinbo, the outlet explained, "There are still over 1,000 Chinese companies on the U.S. sanctions list, and concerns remain about U.S. suppression in the technology sector," adding, "This issue falls under Secretary Raimondo's jurisdiction, not Secretary Yellen's." The report concluded by expressing hope that Raimondo would visit China as soon as possible.