U.S. Treasury Secretary Yellen’s goal in Beijing is to explain President Joe Biden’s China policy, which has shifted a great deal.
Prior to the beginning of the administration, it was widely believed that Mr. Biden would repeal the Trump-era tariffs and take a softer stance on China. In reality, he appointed a number of people who are no friends of China’s ruling Chinese Communist Party (CCP), such as United States Trade Representative (USTR) Katherine Tai who is of Taiwanese descent.
During the first year of the administration, Mr. Biden kept in place most of former President Donald Trump’s China tariffs, which many attributed to the fact that the Biden White House had not yet issued a solid China policy.
Secretary Yellen’s visit to Beijing, from July 6 to 9, is meant to deescalate worsening relations between the two nations. Explaining the reasons for her trip, Ms. Yellen echoed the words of U.S. Secretary of State Antony Blinken, who recently returned from Beijing, saying that she hoped to, “responsibly manage our relationship, communicate directly about areas of concern, and work together to address global challenges.”
Ms. Yellen’s meetings in Beijing will be a continuation of discussions that took place between Mr. Biden and Chinese leader Xi Jinping during the G20 Summit in November. Both Mr. Biden and Mr. Xi stressed the importance of avoiding a conflict.
Shortly before she left for Beijing, Ms. Yellen met with Chinese Ambassador to the United States, Xie Feng. The meeting was seen as a good sign that both sides were committed to improving relations. Ms. Yellen also said that she would like to reopen economic talks with her Chinese counterpart.
Mr. Biden has expressed that he wants to see relations with China improve. From the CCP’s point of view, tensions can only be diminished if the United States removes tariffs, restrictions, and sanctions.
On the other hand, Beijing has done nothing to remedy the issues at the root of U.S. concern. Human rights abuses in Xinjiang continue. Beijing has repeatedly committed fishing violations and encroached on the sea space of U.S. allies in the South China Sea. Mr. Xi is threatening to take Taiwan.
The Russian war in Ukraine is another point of contention between China and the U.S.-led liberal democratic world. It is becoming increasingly likely that Beijing is secretly supporting the Russian war in Ukraine.
Back in April, Ms. Yellen announced that the Biden administration would prioritize national security over the economy in its relationship with communist China. At the G7 meeting, the world’s leading economies agreed that they wanted to “de-risk” by redirecting new investment to other countries, rather than expanding China-based operations.
At the same time that the U.S.-led West appears to be leaning away from China, the CCP is closing China off from the world. Under Mr. Xi, China has been moving further away from market reforms, as the central government’s control of the economy increases. China’s flagging economy, plus the passage of the CCP’s new “counter-espionage” law, is scaring off foreign investment and driving foreign companies to relocate in increasing numbers.
The problems between the United States and China are many and complex. And while Ms. Yellen is a very capable public official, it seems unlikely that her visit will cause the CCP to change track, abide by the global rules-based order, and de-escalate tensions.
Of course, the United States could instantly make the CCP happy by forgetting all of the CCP’s wrongdoing and removing tariffs and sanctions. But it seems unlikely that this will happen.