What does it mean for the US Treasury Department to reiterate the "Three Principles" of economic relations with China?, Yellen's visit to China and its impact on China | the United States | economy
On July 3rd, the Chinese Ministry of Finance announced that, as agreed by both China and the United States, US Treasury Secretary Janet Yellen will visit China from July 6th to 9th. The US Treasury Department also announced this news and mentioned in a brief statement a speech by Yellen in April this year, reiterating the so-called "three principles" of US economic relations with China.
Yellen's information chart, as reported by the National News with accompanying images
Several domestic experts said in an interview with Global Times reporters on the 3rd that the so-called "three principles" of economic relations with China are more aimed at maintaining the so-called national security of the United States, which shows that Yellen's visit to China is still based on the overall and consistent policies of the Biden administration towards China. Washington shows no signs of loosening its strong stance on China, and it is also difficult for the relationship between the two countries to undergo fundamental adjustments through Yellen's visit to China. However, with the recent resumption of contact between China and the United States, the two countries may make progress in some small areas and deepen understanding and exchange views through contact.
According to an official announcement from the US Treasury Department on the evening of the 2nd local time, Yellen's visit to China this time aims to follow the instructions issued by US President Biden after his meeting with Chinese leaders in November last year, and deepen communication between the two countries on a series of issues. The statement stated that Yellen will discuss with Chinese officials the management of China US relations, engage in direct communication in areas of concern, and explore joint responses to global challenges.
It is worth noting that the statement mentions the "three principles guiding economic relations between the United States and the People's Republic of China" outlined by Yellen in his speech at Hopkins University in April this year, which seek to ensure the national security interests of the United States and its allies; Seeking to establish healthy economic relations with China and expanding economic opportunities for American workers and businesses; Seeking cooperation with China on urgent global challenges such as climate change and debt distress. The above "three principles" were once considered the most complete economic strategy of the Biden administration towards China.
On April 20th local time, Yellen first mentioned the "three principles" of US economic relations with China during a speech at Hopkins University, and put safeguarding US national security at the forefront. Yellen stated that national security interests are of paramount importance in US relations with China, and a series of measures to safeguard US national security interests will include export controls, property sanctions, investment inspections, etc. When announcing Yellen's visit to China, the US Treasury Department once again mentioned three principles of Yellen's economic relations with China in the statement.
On the 3rd, Zhu Feng, Executive Dean of the School of International Relations at Nanjing University, stated in an interview with Global Times that the basic policy of the United States to suppress and contain China has taken shape. The economic and trade relations between China and the United States, especially Washington's suppression of China in the economic and technological fields, will not be fundamentally adjusted due to Yellen's visit. The inclusion of Yellen's previous statement on the "three principles" of economic relations with China by the US Treasury Department is an example. This shows that Yellen's visit this time is seeking so-called contact and communication based on the overall hard policy of the Biden administration towards China.
Professor Li Haidong from the School of Foreign Affairs believes that the first of the "three principles" of economic relations with China is "pan security", which turns economic issues into a topic that highlights competition and confrontation. This is by no means a win-win diplomatic direction, but rather a unilateral pressure from the US to force China to act according to its will. He told Global Times reporters that the Biden administration's economic policy towards China has been determined, and competition and pressure remain the main tone, which means that expanding cooperation between the two sides is still very difficult. However, this trip will help economic and trade officials from both sides deepen their understanding and exchange views.
Yellen is the second senior US government official to visit China within a month after US Secretary of State Antony Blinken. According to Reuters on the 3rd, citing a senior official from the US Treasury Department, this trip aims to deepen and strengthen communication frequency between China and the United States. Although both sides may make progress in some clear areas of common interest, there are also some significant differences that will not be resolved through a single visit.
The report states that Yellen plans to inform the Chinese economic decision-making team during this trip that Washington will continue to defend human rights and US national security interests through targeted actions, but hopes to cooperate with Beijing to address challenges such as climate change and debt difficulties.
Zhu Feng told reporters not to have unrealistic illusions about China US relations, but both sides should also take active action and seek opportunities to push China US relations back on track. He stated that during Yellen's visit, China can directly articulate its key concerns, emphasize the importance of China US economic and trade relations returning to a healthy development track, and work together with China to ensure the correct direction of bilateral relations within the existing policy framework.
