Return to site

'Tough conversations' help pave more stable China and US ties

· News

 

broken image

Li responded that the two countries needed to respect each other and should be partners, not adversaries, adding that "constructive progress" had been made during Yellen's trip.

Yellen said Washington and Beijing had a "duty" to responsibly manage the complex relationship, as she brought her case for reining in the mainland's excess factory capacity to the Chinese leadership.

"While we have more to do, I believe that, over the past year, we have put our bilateral relationship on more stable footing," Yellen said.

"This has not meant ignoring our differences or avoiding tough conversations. It has meant understanding that we can only make progress if we directly and openly communicate with one another."

Yellen "raised issues of concern, including industrial overcapacity in China and the impact that could have on American workers and firms," according to a US Treasury readout.

Yellen has made the threat of China's excess production of electric vehicles, solar panels and other clean energy products to producers in the United States and other countries the focus of her second visit to China in nine months.

She visited Beijing in July 2023 to try to normalize bilateral economic relations after a period of heightened tension caused by differences over issues ranging from Taiwan to Covid's origins and trade disputes.

Following her meeting with Li yesterday, Yellen met with Beijing mayor Yin Yong and attended an event with students at Peking University.

On Saturday in the southern export hub of Guangzhou, Yellen and her main economic counterpart, Vice Premier He Lifeng, agreed to launch a dialogue focused on "balanced growth."

Beijing's support for battery-powered rides has helped homegrown champions such as BYD and Geely grab a share in the world's biggest car market, and turn China into the world's largest auto exporter.

But rapid growth has also meant China has created excess manufacturing capacity that could be between five and 10 million EVs per year, according to consultancy Automobility.y.

web page counter