These three points are very important to the US side. International Sharp Review | Seeking "Mutual Benefit and Win Win" with China Yellen | Economy | China

On the 9th, US Treasury Secretary Yellen ended his 4-day visit to China. In these days of meetings and talks, both China and the United States have expressed their intention to strengthen communication and cooperation. Chinese officials emphasize that generalized national security is not conducive to normal economic and trade exchanges; Yellen reiterated that the United States does not seek to decouple from the Chinese economy and promised to seek a mutually beneficial win-win situation for the US China economy.

Yellen is the second senior US government official to visit China within a month. Earlier, US Secretary of State Antony Blinken paid a visit to China. From the information released by both sides, Yellen's visit has allowed both China and the United States to have a deeper and more comprehensive understanding of each other's concerns, and both sides have expressed their willingness to continue dialogue. This has to some extent alleviated the concerns of the international community. Some foreign media believe that this is a "positive step".

Over the past 40 years since the establishment of diplomatic relations between China and the United States, economic and trade cooperation has always been the "ballast" and "propeller" of bilateral relations. But in March 2018, after the United States unilaterally provoked trade with China, the economic and trade cooperation between the two countries was severely impacted. Since taking office, the Biden administration has continued the previous policy of imposing tariffs on China and intensified its crackdown on China. In November 2022, the first Bali meeting between China and the United States reached important consensus. Yellen's visit to China this time is seen as a concrete measure to implement the consensus of the two heads of state and strengthen communication and exchange in the financial and economic fields between the two countries.

From the information released by both sides, China believes that this meeting is "constructive". Yellen also stated at the end of his visit that the meetings with the Chinese side in the past few days were "direct and productive". At the current lowest point in Sino US relations since the establishment of diplomatic relations, these statements from both sides are helpful in easing Sino US relations and also in line with the expectations of the international community.

But at the same time, the outside world has noticed that Yellen is still talking about "national security" and claiming to establish a set of "fair" economic rules. The Chinese side has also expressed concerns about the US sanctions and restrictions on China. Analysts point out that this indicates that there are still differences between China and the United States in improving economic and trade cooperation, especially as the US still has a lot to do.

Cognition determines thinking. The current dilemma in China US relations is fundamentally due to a mistaken perception of China by the US side, which regards China as the "most important strategic competitor". Similarly, in terms of economic and trade relations, some people in the United States still hold the erroneous idea that "the United States is at a disadvantage, and China is taking advantage", failing to truly recognize that "mutual benefit and win-win are the essence of China US economic relations", and failing to realize that "strengthening cooperation is a practical need and correct choice for both China and the United States".

At present, China is promoting Chinese path to modernization, and is willing to strengthen cooperation and promote common development with countries around the world, including the United States. For the United States, China has a huge market, and cooperation with China is also beneficial for promoting employment in the United States and curbing inflation. According to the estimate of JPMorgan Chase Bank, the US Treasury Department may issue treasury bond with a total amount of about $1.1 trillion within 7 months after the debt ceiling is raised. Some analysts pointed out that if overseas buyers reacted coldly to the US treasury bond bonds, the US would still face great trouble. Only by recognizing the essence of economic and trade cooperation between China and the United States can the US calm down and think about how to truly benefit the US and its people.

At the same time, the US also needs to make efforts to bring the economy back to the economy and politics back to politics. In fact, the US is not unaware of the harm caused by the trade war with China. According to Moody's research, over 90% of the tariff costs in the US trade war with China are borne by the US side. However, the important goal originally set by the United States - to reverse the trade deficit - has not been achieved: according to US data, the US commodity trade deficit with China widened by 8% last year, reaching $382.9 billion, second only to the highest record of $419.4 billion in 2018. The Congressional Hill acknowledged in an article that the US has lost all the trade war with China.

Screenshot of the title of an article in the Congressional Hill newspaper in the United States

The current political ecology in Washington is distorted, and many politicians, driven by the so-called "political correctness" of being tough on China, continue to generalize the concept of national security and politicize economic and trade issues. At present, the US has included over 1000 Chinese companies in the sanctions list. It is reported that the US government will also approve an administrative order restricting investment in China. This is precisely why China emphasized to Yellen this time that politicizing and securitizing economic cooperation is not conducive to the development of the two countries and even the global economy. What the United States should do now is to lift the tariffs imposed on China as soon as possible, relax export controls on China, lift sanctions on Chinese enterprises, and create conditions for expanding trade and investment cooperation between the two countries.

There is another fundamental issue: China US economic and trade cooperation cannot be separated from the overall environment of China US relations. Before Yellen's visit to China, the US Treasury Department issued a statement stating that it would "responsibly manage China US relations.". Among the members of the Biden administration cabinet, Yellen's attitude towards China is relatively rational. Moreover, she has served as the Chairman of the Federal Reserve and possesses professional qualities, which can and should play a role in promoting the improvement of Sino US relations.

The latest Global Economic Outlook report released by the World Bank predicts that global growth will slow down from 3.1% in 2022 to 2.1% in 2023. The total economic output of China and the United States exceeds one-third of the world, contributing over 50% to global economic growth. The importance of strengthening economic and trade cooperation between the two countries to the world economy is evident. Since the beginning of this year, many American corporate executives have come to China, clearly opposing "decoupling" and calling for strengthened cooperation with China, which represents the call of the American business community.

As the saying goes: Actions speak louder than words. I hope that after Yellen returns to China, people can see the United States take practical actions and work together with China to promote the stability and improvement of China US relations, so that China US economic and trade cooperation can see a rainbow as soon as possible.