8-7-2023 (BEIJING) The United States and China, the world’s two largest economies, must compete fairly and communicate closely to avoid misunderstandings, according to US Treasury Secretary Janet Yellen, who is in Beijing for meetings with top Chinese officials.
Yellen told Vice Premier He Lifeng that despite recent tensions, a bilateral trade record set last year shows there is “ample room for our firms to engage in trade and investment.” She stressed that it was critical to keep talking about areas of common interest as well as disagreements.
The meeting took place at the Diaoyutai state guest house, where foreign dignitaries are often received in Beijing. Yellen said, “Amid a complicated global economic outlook, there is a pressing need for the two largest economies to closely communicate and exchange views on our responses to various challenges.”
Despite talk of US-China economic decoupling, recent data shows a trade relationship that is fundamentally solid, with two-way trade hitting US$690 billion last year. Yellen repeated her mantra that Washington is not seeking a winner-take-all approach or economic advantage in its relations with China but wanted to ensure healthy competition with a “fair set of rules” that would benefit both countries over time.
The United States would continue to communicate directly its concerns about specific economic practices, and would take targeted actions to protect its national security, Yellen said. She urged China not to allow any disagreements to “lead to misunderstandings, particularly those stemming from a lack of communication, which can unnecessarily worsen our bilateral economic and financial relationship.”
