Four days of high-level economic meetings between the United States and China concluded in Beijing without any major breakthroughs, but the two countries agreed to continue discussions on trade, investment, and national security issues. Despite Treasury Secretary Janet Yellen’s visit to China and meetings with top officials, it was apparent that there is little trust between the two sides. The upcoming U.S. election year and growing hostility toward China in the U.S. make the economic relationship more challenging to navigate in the future. Yellen emphasized the need for more work to be done, and uncertainty remains about the future of the relationship.
Yellen met with key Chinese officials, including the governor of the People’s Bank of China and Vice Premier He Lifeng, to discuss fostering balanced growth and addressing the flood of Chinese exports that some argue are distorting global markets. One of the pressing concerns raised by the Biden administration is China’s export of green energy technology, which could threaten U.S. industries. Yellen urged China to focus on domestic consumption and warned against disrupting supply chains through excessive exports. However, China denies subsidizing its exports and views the issue from a global demand perspective, calling for fair competition and open cooperation in economic matters.
The possibility of additional American tariffs looms as China seeks a rollback of tariffs imposed during the Trump administration. While Treasury officials did not threaten tariffs during the meetings, they noted that other countries are initiating anti-dumping investigations in response to Chinese exports. Both sides are wary of escalating trade tensions, and any steps toward reducing tariffs would be seen as an achievement. Chinese officials expressed concerns about U.S. national security measures, including restrictions on technology transfer and access, and legislation targeting Chinese companies like ByteDance if they fail to meet U.S. security requirements.
The Biden administration is facing pressure from both Democratic and Republican lawmakers to decouple the two economies through investment restrictions and tariffs on Chinese imports. However, Yellen emphasized that the U.S. does not seek a wholesale separation from China, as the two economies are deeply integrated. Despite the challenges, both sides have expressed a willingness to continue dialogue and work toward resolving their differences in a way that benefits both economies. The relationship between the U.S. and China will continue to be a complex and sensitive issue, particularly in a political climate where tensions are high between the two countries.
