WASHINGTON: Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng engaged in a two-day meeting in San Francisco to address a range of economic issues. This comes at a time when the competition between the two nations has significantly escalated, posing complex challenges and uncertainties for their relationship.
The primary objective of Yellen’s talks with Vice Premier He Lifeng was to lay the groundwork for an anticipated meeting between President Joe Biden and Chinese President Xi Jinping during the upcoming Asia-Pacific Economic Cooperation (APEC) summit in San Francisco. Notably, this meeting would be their first face-to-face engagement in nearly a year.
Despite the potential significance of the upcoming meeting between the leaders of the two superpowers, the White House has set relatively modest expectations for any major breakthroughs in the US-China relationship. The delicate nature of this bilateral relationship, characterized by its competitive dynamics, plays a crucial role in shaping these expectations.
Nicholas Szechenyi, the deputy director for Asia at the Center for Strategic and International Studies, underscored the challenges faced by the United States in conveying themes of inclusiveness and interconnectedness, which are central to this year’s APEC summit. These themes, while essential for fostering regional cooperation, may not fully align with the prevailing emphasis on economic competition in the Indo-Pacific region.
The US has indeed prioritized economic competition with China, as reflected in various policy actions. In August, President Biden signed an executive order aimed at regulating and blocking high-tech U.S.-based investments in China, citing national security considerations. Furthermore, the U.S. has taken steps such as restricting exports of advanced computer chips to China, marking a departure from the past economic cooperation.
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The economic competition between the two nations has also extended to areas like data security and the presence of Chinese tech companies on US soil. US lawmakers have raised concerns about data security and harmful content associated with certain Chinese-owned tech platforms, including the popular app TikTok.
Earlier in the year, tensions flared when a Chinese surveillance balloon entered sensitive US airspace. While the US military responded by shooting down the balloon near the Carolina coast, China maintained that it was an inadvertent incident involving a civilian aircraft.
Despite these challenges and areas of friction, both countries have made efforts to ensure that economic ties remain relatively unaffected. This includes recent high-level discussions. President Biden held a substantial one-hour conversation with Chinese Foreign Minister Wang Yi, emphasizing dialogue and cooperation.
Treasury Secretary Yellen has played a pivotal role in maintaining diplomatic and economic channels with China throughout the year. Notably, in September, the U.S. Treasury Department and China’s Ministry of Finance launched economic working groups, aiming to alleviate tensions and foster stronger economic ties.
The US and China are navigating a complex relationship marked by competition, cooperation, and nuanced diplomacy, reflecting the multifaceted nature of their interactions on the global stage.
