US Treasury Secretary Janet Yellen and her team are leaving China and returning to the US after addressing today’s key issues between the two countries.
Here, we take a look at what she set out to achieve, what has been achieved, and the current state of affairs in the world’s two largest economies.
unfair trade practices
Yellen spoke about a major complaint of the administration of U.S. President Joe Biden: that the Chinese government’s economic model and trade practices create an unfair competitive advantage for U.S. businesses and workers by producing highly subsidized solar products. He said he would like to participate in U.S.-China talks to address the issue of putting China in a disadvantageous position. Electric vehicles and lithium-ion batteries are in the red and dominate the global market.
Subsidies and other policy support from the Chinese government have encouraged Chinese solar panel and electric vehicle (EV) makers to invest in factories and build production capacity far beyond what the domestic market can absorb.
She calls this “overcapacity.”
Throughout the week-long meeting, she highlighted the risks that arise from one country maintaining the production capacity of nearly all of these industries, the threat it poses to other countries’ industries, and the significant rapid increase in exports from one country. talked about how it could have a huge impact on the world. world economy.
A U.S. statement released after two days of extended talks between Yellen and Chinese Vice Premier He Lifeng in the southern city of Guangzhou said the two countries ultimately agreed to “share intensive opinions” about more balanced economic growth. They have agreed to do an exchange.
It is not currently clear when or where these exchanges will take place.
“It’s not something that’s going to be solved in an afternoon or a month, but I think they’ve heard that this is an important issue for us,” she said.
Money laundering and related crimes
After several meetings, the U.S. Treasury Department and China’s central bank agreed to work together to combat money laundering in their respective financial systems.
Nearly all of the precursor chemicals needed to make the deadly drug fentanyl flow into the United States from China.
The United States says exchanging information about money laundering related to fentanyl trafficking could help cut off the flow of precursor chemicals to Mexico and the United States.
“The Treasury Department is committed to using all tools, including international cooperation, to counter this threat,” Yellen said in a speech announcing the group’s launch.
The new U.S.-China cooperative will be part of the two countries’ economic working group, which was launched last September, and the first exchanges are expected to be held in the coming weeks.
TikTok
The U.S. effort to ban TikTok, a social media app owned by Chinese parent company ByteDance, was initially brought up by the Chinese side during U.S.-China talks, a senior Treasury Department official told The Associated Press. The company has previously promoted a data security restructuring plan called “Project Texas,” which it says is sufficient to prevent national security concerns.
But U.S. lawmakers are working to either ban the app or force Chinese companies to sell their interests in it, a move the White House supports. It was clear that there was little movement on this issue in China this week.
Yellen said at a news conference Monday that she supports the administration’s efforts to address national security issues related to sensitive personal data.
“This is a legitimate concern,” she said.
“Many U.S. social apps are not allowed to operate in China,” Yellen said. “We want to find a way forward.”
financial stability
On the second day of Yellen’s visit to China, she announced that the U.S. and China had agreed to work closely together on issues related to financial stability, and that U.S. and Chinese financial regulators announced a series of plans for the failure of major banks. They announced that they had agreed to hold exercises in both countries. Ryogoku.
Its purpose is to determine how to adjust in the event of a bank failure, with the aim of preventing catastrophic stress on the global financial system.
Yellen said some exercises have already taken place.
“We are pleased to hold an upcoming exchange on financial sector resilience and the impact of the insurance sector’s exposure to climate risks on financial stability.
“It’s just like military leaders need a hotline in times of crisis,” Yellen said.
“Financial regulators in the United States and China must be able to communicate to prevent financial stress from escalating into a crisis that has major implications for the public and the international community.”
what she ate
Yellen has become something of a gourmet celebrity in China since eating psychedelic mushrooms in Beijing last July.
This trip was no exception.
Chinese officials brought up her celebrity ahead of important meetings — Premier Li Qiang said in his opening remarks that Yellen’s visit “certainly has attracted a lot of attention in society,” and the media said Yellen We reported on his travels and eating habits.
And social media has been abuzz following her recent movements around Guangzhou and Beijing.
This time, Yellen dined at Laochuanban, a popular Sichuan restaurant in Beijing. She also had lunch with Beijing Mayor Yin Yong at the Beijing International Hotel.
On Monday night, her last night in China, Yellen visited Beijing’s Jingya Brewery, co-founded by an American, and ordered Flying Fist IPA, a beer made with American hops.
