BEIJING — U.S. Treasury Secretary Janet Yellen met Sunday with Chinese Premier Li Qiang in Beijing and sent a message of mutual cooperation despite the nations’ differences.
Yellen came to China with trade practices that put American companies and workers at an unfair competitive disadvantage at the top of her mind.
Chinese government subsidies and other policy support have encouraged solar panel and EV makers in China to invest in factories, building far more production capacity than the domestic market can absorb.
The massive scale of production has driven down costs and ignited price wars for green technologies. While that is a boon for consumers and efforts to reduce global dependence on fossil fuels, Western governments fear that that capacity will flood their markets with low-priced exports, threatening American and European jobs.
In the ornate Fujian room of the Great Hall of the People building just west of Tiananmen Square, she told Li: “While we have more to do, I believe that, over the past year, we have put our bilateral relationship on more stable footing.”
“This has not meant ignoring our differences or avoiding tough conversations,” she said. “It has meant understanding that we can only make progress if we directly and openly communicate with one another.”
Li said media interest in Yellen’s visit “shows the high expectation they have … and also the expectation and hope to grow” the U.S.-China relationship.
The meeting comes after the U.S. and China on Saturday agreed to hold “ intensive exchanges ” on more balanced economic growth, according to a U.S. statement issued after Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in the southern city of Guangzhou.
They also agreed to start exchanges on combating money laundering. It was not immediately clear when and where the talks would take place.
“As the world’s two largest economies, we have a duty to our own countries and to the world to responsibly manage our complex relationship and to cooperate and show leadership on addressing pressing global challenges,” Yellen said.
Her trip coincides with Russian Foreign Minister Sergey Lavrov’s planned visit to meet with China’s minister of foreign affairs, Wang Yi, on Monday and Tuesday this week, China’s foreign ministry said on Sunday.
China’s sharp rise in trade with the Kremlin has increased since Russia’s invasion of Ukraine in February 2022. While China does not provide weapons to Russia, the U.S. has expressed concern about China’s sale of items to Russia that can have military as well as civilian uses.
During a press conference Saturday, Yellen addressed the U.S. relationship with China on the subject of Russia.
“We think there’s more to do, but I do see it as an area where we’ve agreed to cooperate and we’ve already seen some meaningful progress,” she said. “They understand how serious an issue this is to us.”
Yellen also met Sunday with Beijing Mayor Yin Yong and told him that “local governments play a critical (economic) role, from boosting consumption to addressing overinvestment,” adding that Beijing is particularly important in China.
“I believe that to understand China’s economy and its economic future, engagement with local government is essential,” Yellen said.
Later Sunday, Yellen met with students and faculty at Peking University.
