In remarks ahead of the talks, Yellen stressed the importance of communication, saying that the three meetings she had had with He in less than a year were a “clear representation” of that.
“I believe we have taken up the challenge from our leaders to put the US-China relationship on a more solid footing,” she said, according to the US Treasury Department.
“As I have said, the United States seeks a healthy economic relationship with China that benefits both sides.”
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US Treasury chief Janet Yellen in China aiming to further stabilise bilateral trade ties
US Treasury chief Janet Yellen in China aiming to further stabilise bilateral trade ties
Yellen arrived in Guangzhou on Thursday for the first leg of a week-long trip to China aimed at managing trade relations between the world’s two largest economies.
According to the Treasury Department, she told He that it was key for the United States and China to work on global issues such as climate change and debt distress in emerging markets and developing economies.
The two countries should also closely communicate on issues of concern such as overcapacity and “national security-related economic actions”.
“It is what the world and our citizens expect of us,” she said.
Before their closed-door talks began, China’s new “economic tsar” told Yellen that their main task would be to have “further in-depth discussions on important issues to China, the US, and the global economic and financial fields”, according to Chinese state broadcaster CCTV.
The meetings would seek to “provide appropriate responses to some key concerns in China-US economic relations”, he added.
The talks are expected to continue on Saturday.
Current affairs: sparks fly between China, US over EVs before Janet Yellen visit
Current affairs: sparks fly between China, US over EVs before Janet Yellen visit
Earlier on Friday, Yellen held a round-table discussion with economists to discuss challenges and opportunities in the Chinese economy. She also similarly stressed the importance of stable economic ties with China at a separate gathering of the US business community.
“The United States will pursue a healthy economic relationship with China. We will seek to cooperate with China on global challenges,” she told an event organised by the American Chamber of Commerce in Guangzhou, the capital of Guangdong province.
But Washington would also “deploy our economic tools when needed and in a narrowly targeted manner to protect our national security and that of our allies”, she said, according to the Treasury Department.
China, she said, had imposed barriers to access for foreign firms and taken “coercive actions against American companies”.
“Put simply, the US-China bilateral economic relationship is among the most important in the world. Responsibly managing it is essential,” she said.
Yellen had started her day with a meeting with Guangdong governor Wang Weizhong, where they discussed the industrial outlook for the province, a manufacturing powerhouse, and emphasised that healthy US-China economic ties could bring significant benefits for both.
Yellen, widely seen as one of the most dovish members of the Biden administration, has years of experience in negotiating with Chinese officials.
This is her second visit to China in less than 10 months. Her previous trip last July during high US-China tensions helped to restart dialogue and launch bilateral working groups on economic and financial policy.
This time, her visit comes amid thawing relations as the two world powers seek to ease tensions and strengthen communication.
It also comes days after Xi and his US counterpart Joe Biden held a phone call covering a wide range of issues, including US tech curbs and Chinese trade barriers.
