Biden Admin Seeks to ‘Deepen Bilateral Communications’ with China: Yellen

Treasury Secretary Janet Yellen speaks about goals for the 2024 tax filing season at IRS headquarters in Washington on Nov. 7, 2023. Stefani Reynolds/AFP via Getty Images

The United States and China must deepen their communication and work towards mutual economic benefit, according to U.S. Treasury Secretary Janet Yellen.

The comments followed the conclusion of Ms. Yellen’s second day of discussions with Chinese Communist Party (CCP) politburo member and Vice Premier He Lifeng in San Francisco.

The secretary used the occasion to underscore the importance of the U.S.-China relationship to the global economy.

“The relationship between the United States and the People’s Republic of China is one of the most important relationships of our time,” Ms. Yellen said during a press conference following the meeting.

“The path it takes will shape opportunities and challenges for people in both of our countries and the world.”

Ms. Yellen added that her discussions with Mr. He aimed primarily to “deepen bilateral communications” and build on “values we share” to help stabilize the two nations’ fractured relationship.

She tied the U.S.-China relationship to the health of the greater international community, saying that continued fallout would be detrimental to markets throughout the world. The United States, therefore, would not seek to disentangle its economy from China’s, she said.

“I emphasized that the current uncertain global landscape makes it particularly crucial that we maintain communication going forward,” Ms. Yellen said.

“We do not seek to decouple our economy from China’s. This would be damaging to both the U.S. and China, and destabilizing for the world.”

‘Concerned’ About China’s Non-Market Policies

Ms. Yellen said that her engagement with Mr. He was not “communication for communication’s sake,” and that the administration had “made significant progress” over the last year in stabilizing the bilateral relationship.

Apart from several high-profile meetings, however, no substantive agreements between the two powers have been made.

Ms. Yellen added that the administration remained “concerned” about China’s non-market policies and, particularly, the CCP’s continued efforts to support adversarial powers like Russia.

The United States had intelligence, she noted, that private firms and financial institutions in China were “evading sanctions” and aiding Russia’s war in Ukraine by providing military equipment to Moscow.

There would be “significant consequences” if the CCP directly engages in such behavior, she said.

In all, however, Ms. Yellen’s remarks were conciliatory and aimed to downplay expectations for any major breakthroughs from ongoing U.S. engagements with China in San Francisco, where the Asia-Pacific Economic Cooperation (APEC) summit is taking place.

The conciliatory tone echoes that of senior administration officials who earlier this week previewed an upcoming bilateral meeting between President Joe Biden and CCP leader Xi Jinping.

During that meeting, the officials said, President Biden would seek to reaffirm CCP leadership and stabilize the relationship while acknowledging the nations’ differences.

“We’ve indicated to Chinese interlocutors that basically every element in our bilateral relationship will be on the table for discussion,” one official said during a press call previewing the event.

“We know efforts to shape or reform China over several decades have failed. We think diplomacy is how we clear up misperceptions, signal, communicate, avoid surprises, and explain our competitive steps. We are in competition with China. But we do not seek conflict, confrontation, or a new Cold War.”