US Treasury’s Yellen to go to China to stabilise ties

US Treasury Secretary Janet Yellen is about to journey to Beijing for conferences with senior Chinese language officers on a broad vary of points, together with US issues a few new Chinese language counterespionage legislation.

Yellen’s long-anticipated journey – to happen from July 6-9 – is a part of a push by President Joe Biden to deepen communications between the world’s two largest economies, stabilise the connection and minimise the dangers of errors when disagreements come up.

It comes simply weeks after Secretary of State Antony Blinken visited Beijing and agreed with Chinese language President Xi Jinping to stabilise ties and make sure the two international locations’ intense rivalry doesn’t veer into battle. China protested loudly when Biden subsequently referred to Xi as a “dictator,” however analysts say the comment had little impression on efforts to enhance ties.

The Treasury chief plans to inform China’s new financial staff that Washington will proceed to defend human rights and its personal nationwide safety pursuits through focused actions towards China, however desires to work with Beijing on pressing challenges equivalent to local weather change and debt misery confronted by many international locations.

“We search a wholesome financial relationship with China, one which fosters progress and innovation in each international locations,” a Treasury official mentioned. “We don’t search to decouple our economies. A full cessation of commerce and funding can be destabilising for each our international locations and the worldwide economic system.”

The official, talking on situation of anonymity, declined to present particulars on which Chinese language officers Yellen would meet in Beijing. A second administration official advised Reuters that Yellen was anticipated to satisfy the Chinese language Vice Premier He Lifeng.

Yellen would underscore Washington’s dedication to strengthen its personal competitiveness whereas responding with allies to what Washington calls “financial coercion” and unfair financial practices by China, the primary official mentioned.

One clear space of concern concerned China’s new nationwide safety and espionage legislation, and the potential implications for overseas and US companies, the official added.

“Now we have issues with the brand new measure, and the way it would possibly apply, that it might broaden the scope of what’s thought-about by the authorities in China to be espionage exercise,” the official mentioned, citing attainable spillovers to the broader funding local weather and the financial relationship.

Whereas no main “breakthroughs” have been anticipated, Treasury officers hope to have constructive conversations and construct longer-term channels of communication with China’s new financial staff, together with on the sub-cabinet degree, the official mentioned.

US officers would additionally reiterate issues about human rights abuses towards the Uyghur Muslim minority, China’s latest transfer to ban gross sales of Micron Expertise reminiscence chips, and strikes by China towards overseas due diligence and consulting companies.

Yellen would additionally speak with Chinese language officers a few long-awaited US government motion curbing outbound funding in China in sure vital sectors, and “be certain they do not suppose one thing is extra sweeping than it’s or than it is meant to be,” the official mentioned.

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