Revealing Yellen's "Extended Edition" Beijing Tour: "Two Days, Four 10 Hour Talks" China | United States | Extended Edition

"The relationship between the United States and China is one of the most important relationships of our time," said US Treasury Secretary Janet Yellen, who arrived in Beijing and repeatedly stated that the United States does not seek to decouple from China.

Before leaving, Yellen took the initiative to take stock of her four-day trip at the press conference on the 9th. Apart from not mentioning that she had eaten Yunnan cuisine on the day of her arrival, she recounted all the meetings and discussions with the Chinese side during her trip to Beijing, stating that "the purpose of this trip is to establish and deepen the relationship with the new economic leadership team in Beijing. Our discussion is part of a broader collaborative effort to stabilize the relationship, reduce the risk of misunderstandings, and discuss cooperation areas.".

Yellen also revealed that she had 10 hours of bilateral talks in two days. "Diversification of the supply chain does not equate to decoupling," Yellen said. "I am working hard to convey this message, and I believe in it myself." I believe I have received this message. "

She also said, "No visit can solve our challenges overnight. But I hope this visit will help establish a flexible and effective communication channel with China's new economy team."

Wang Yong, a professor at the School of International Relations at Peking University and director of the Center for International Political and Economic Studies, told First Financial reporters, "Yellen's visit to China this time sends a signal that as two major countries, China and the United States should strengthen communication and eliminate misunderstandings caused by differences. China and the United States can fully cooperate in stabilizing the global macroeconomic situation and jointly address global challenges, such as climate change. China and the United States should establish a constructive economic and trade relationship to achieve mutual benefit and win-win. This is a relatively positive performance."

"Two days, four 10 hour meetings"

On July 3rd, the Chinese Ministry of Finance announced that, as agreed by both China and the United States, US Treasury Secretary Yellen will visit China from the 6th to the 9th. This is Yellen's first visit to China as finance minister.

In terms of public visibility, what Yellen ate during his four days in China has aroused considerable curiosity among the public. For example, Yellen indulged in a Yunnan restaurant in Beijing after a long flight. According to the restaurant's Weibo account, on the 6th, Yellen chose to have his first meal here after getting off the plane.

On the 8th, a reporter from First Financial visited the restaurant and found that the restaurant had quickly posted hot words and replicated menus related to Yellen's dining.

In the high-level meeting, as Yellen stated, "10 hours of talks were held over two days.". She described these talks as "direct, substantive, and productive" at the press conference.

According to Xinhua News Agency, Premier Li Qiang met with US Treasury Secretary Yellen at the Great Hall of the People on the afternoon of July 7th.

According to Xinhua News Agency, Vice Premier of the State Council and China US economic and trade leader He Lifeng met with US Finance Minister Yellen in Beijing on the 8th.

According to the website of the People's Bank of China, on July 7, 2023, Pan Gongsheng, Secretary of the Party Committee of the People's Bank of China and Director of the State Administration of Foreign Exchange, met with visiting US Treasury Secretary Yellen and exchanged views on economic and financial issues of common concern. Vice President of the People's Bank of China, Xuan Changneng, attended the meeting.

According to the website of the Ministry of Finance, on the evening of July 8, 2023, Treasury Secretary Liu Kun and US Treasury Secretary Yellen held talks at the Diaoyutai State Guesthouse, exchanging views on the macroeconomic situation between China and the United States and the world, their fiscal policies, and addressing global challenges. Liao Min, Deputy Director of the Central Finance Office and Deputy Minister of Finance, accompanied the attendance.

Yellen stated at a press conference that she has always planned to talk directly and honestly about China US relations: addressing the challenges and opportunities faced on a clear and realistic basis.

Yellen said, "As the two largest economies in the world, our two countries account for 40% of the global economy. What we do - whether in the bilateral field or on the broader global stage - affects the lives and livelihoods of our people and those of other countries."

"President Biden and I did not view the relationship between the United States and China through the framework of major power conflicts. We believe that the world is big enough for both of us to thrive. Both countries have an obligation to responsibly handle this relationship: find a way to live together and share global prosperity." She said, "In the past two days, I have had the opportunity to do this."

Yellen said that she met with senior Chinese officials during her visit to China to discuss important pillars of China US economic relations.

"We can gain a better understanding of each other's economic and policy choices, which I believe is crucial as the world's two largest economies. Even where we disagree, I believe that our frank and in-depth discussions on opportunities and challenges in our relationship have significant value, and it allows us to better understand each country's actions and intentions," Yellen said.

"I hope our relationship can enter a stage where high-level diplomacy is simply seen as a natural factor in managing one of the most important bilateral relationships in the world," Yellen said.

Wang Yong explained that Yellen himself belongs to the "moderate faction" in the Biden administration.

"Her moderate voice is currently under great pressure within the Biden administration, especially in American politics. It can only be said that she represents a portion of the voices, namely the rational and pragmatic voices of economic professionals, and to some extent, also represents the voice of the American business community." Wang Yong believes that a moderate voice should be supported by the current Biden administration, and play a role in improving Sino US relations, implementing the consensus reached at the Bali China US summit last October, and controlling differences before the US presidential election.

The United States does not seek to decouple from China

In Beijing this time, Yellen repeated several times the viewpoint he had put forward since April this year, that is, not seeking to decouple and break ties with China.

On April 20th, Yellen said in a speech, "We are not seeking decoupling from China. The disconnection between two economies is a huge disaster for both sides. It will also cause instability for the world. We know that the health of the Chinese and American economies is closely linked." Yellen gave an example, saying that China's growth means more demand for American goods and services.

According to statistics from First Financial Journalists, during this trip to Beijing, Yellen repeated her viewpoint during meetings with senior Chinese leaders, representatives of American companies operating in China, and journalists in Beijing.

She stated that she made it clear that the United States is not seeking to decouple from China.

"On the one hand, there is decoupling, and on the other hand, there is an important difference between diversifying key supply chains or taking targeted national security actions." Yellen said, "We know that decoupling from the world's two largest economies would be catastrophic for both countries and would disrupt world stability. And this is almost impossible to achieve. We want a dynamic and healthy global economy that is open, free, and fair - rather than a fragmented or forced economy for countries to take sides."

However, on the one hand, it claims not to seek decoupling, and on the other hand, the US has also taken frequent actions. Previously, the US Department of Commerce announced on June 12th local time that some Chinese entities would be included in the export control "entity list". A spokesperson for the Chinese Ministry of Commerce stated that the US's generalization of national security, abuse of export control measures in the absence of factual basis, and use of national power to attack foreign enterprises and institutions are typical economic coercion and unilateral bullying, seriously damaging the legitimate rights and interests of enterprises and affecting the security and stability of global industrial and supply chains.

Wang Yong analyzed to First Financial reporters that Yellen emphasized in his speech on April 20th that the United States is seeking to establish a constructive economic and trade relationship with China, and decoupling from China would have a catastrophic impact on the United States; On the other hand, it also advocates the need to protect the national security of the United States, regulate high-tech, and implement the so-called "small courtyards and high walls" policy.

"From Yellen's perspective, she believes this is reasonable," Wang Yong said. However, for China, the United States is actually implementing "decoupling and chain breaking" in semiconductor related equipment, technology, raw materials, and other aspects.

"There are also some people in the United States who advocate for gradually reducing dependence on the Chinese market and transferring orders to regions outside of China. This is called 'de risk', but in reality, it is de sinicization." Wang Yong said, "I think China should emphasize that the so-called 'de risk' should follow the laws of the market, and be decided by industry enterprises themselves, rather than government politicians. This completely violates market laws and relevant rules of the World Trade Organization. This is actually decoupling and chain breaking, which is not beneficial for China and the United States, nor for the stability of the global economy and global supply chain. On the contrary, it is damaging the stability of the supply chain. The risks of the global supply chain are exactly what the United States wants to avoid, but US policies." But it has led to greater risks

"I believe that Yellen's visit demonstrates that China and the United States have decided to cooperate to solve related issues, which is the best outcome. I hope that the statement that the United States does not seek decoupling and disconnection can be implemented." Wang Yong said.

Regarding China US relations, State Councilor and Foreign Minister Qin Gang pointed out during his meeting with US Ambassador to China Burns on May 8 that the US should correct its understanding of China, return to rationality, and fasten the first button of China US relations, achieving mutual success in the better development of both countries. We cannot focus on communication while constantly suppressing and containing China. You can't say one thing and do another.