United State Treasury Secretary Janet Yellen

Janet Yellen

US-China talks a ‘step forward’ in relations, says Janet Yellen

US Treasury Secretary Janet Yellen is leaving after visiting China to try to strengthen economic ties. And they believe that healthy relations can be established between the two countries. While in China, Miss Yellen held talks with senior Chinese officials for 10 hours.

US- Treasury Secretary

He said that these meetings have brought the relationship between the two countries to the brink of strengthening after long-standing tensions over trade and other issues. Here Miss Yellen speaks at a press conference before the US and China. US Treasury Secretary Janet Yellen Have significant disagreements. Those disagreements need to be communicated clearly and directly. But President Biden and I do not see the relationship between the US and China through the frame of great power conflict.

US And China

We believe that the world is big enough for both of our countries to thrive. Both nations have an obligation to responsibly manage this relationship.Finding a way to live together and share in global prosperity. Well, our correspondent Rupert Wingfield Hayes is following this story from Bangkok. And they gave us this analysis, this analysis of Miss Yellen’s visit to China.

Janet Yellen

Very roughly speaking, I think. That the trip went as well as anyone expected. At first, Janet Yellen said she was able to be direct.Respectful communication between China and the US, and that is something that has been missing for a long time. Second, she was able to meet face-to-face with China’s new team, especially in the economy and its meaning. That she is actually referring to Saturday tomorrow. He spent most of the day with Hurley Fung, the vice-premier and in charge of China’s economy. Who is very close to President Xi Jinping. Who is a very important figure in the new Chinese administration, you know, none of them

The US administration has done that before, so that’s important. The other thing Janet Yellen was it went to great lengths to do during this trip is to try and convince the Chinese leadership that the Biden administration, unlike the previous Trump administration, is not openly hostile to China, she said. They do not view the relationships through the prism of big power conflict and that America was not going to decouple its economy from China.Chinese authorities believe it.

Or not, we don’t know and we haven’t received a readout from them yet. I think you know. So in the end, I mean. That’s what I think. That shows that the conversation is happening again. More negotiations will take place in the next few months. On the other hand, there will be more visits by US officials and Chinese officials. But you know. Most experts you talk to. They say that it is a very difficult relationship now. And requires careful management over a long period of time.

‘Progress’ In US-China Talks

If it is going to stay stable. And that the progress made in the last few days is good. But it is fragile. So let’s talk now. From Patrick Read, a financial expert and visiting lecturer at Cambridge University. And his Treasury spokesman said. That no specific policy progress has been made in it. But it has been successful. What’s your guess?Well, if you’re expecting any brand new sparkling trade agreements then you’d be sort of disappointed. What and I agree with your colleague on this, there is a baby steps in throwing this this relationship it it really is the very beginning of the thought.

But we’re when we’re far from out of the woods just yet, the difficulty which which may be ongoing is separating the politics with the economics now the two of the biggest.Economies in the world need to look through this because they both need each other. Yeah. Can you just talk us through what each side is looking for in terms of, you know what, what are the the worries for either side? Yeah, I mean you’ve got the steam taken out of the Chinese economy.

You’ve got the Renmbi, their, their, their currency on its knees.Basically when they relaxed the restrictions of COVID, that’s huge optimism in China that’s been taken out. So you’ve got this sense of you know any help they can get is a is a is a bonus. On the opposite side of that you’ve got on the US side, you’ve got a resurgence of the dollar which doesn’t help China, but you’ve also got pretty largely pristine US macro. We’ve got a really good GDP durable goods.

Consumer confidence and and not a bad U.S. jobs report above average pre pandemic levels. So so that in its sense you’ve got to ask yourself a question. Who really needs this? They both do to some extent.I suppose also you’ve got on the US side, they’ve been Janet Yellen herself was critical of the the curbs on the Chinese curbs on US firms, wasn’t she?

Patrick Reid

Visiting Lecturer, University Of Cambridge

And also they they raised national security concerns about tech. Don’t they talk us through some of that?Yeah. Well China is one of the biggest producers of of certain metals which do support and and are are varying in need for computer chips, you know gallium and and germanium.

This is a key driving force for the future of of a I and you know we we had this resurgence in NVIDIA stock and and.You know looking at the years ahead I’m sure the US is is very happy with the with their own macro right now but how long will that last You know it just does make sense for the to to separate any national security action and and recent comments by Biden to to the economic picture and that is a tall order it will not be sold anytime soon.But the important thing is the statement is there.

The other thing. I need to mention is olive branches get taken and given cyclically. So this is all normal posturing for for the US and and and the China economies.

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