Beijing - Janet Yellen, the US Treasury Secretary, arrived in Beijing on Thursday for a crucial visit aimed at improving communication and alleviating tensions between the United States and China. This visit takes place amidst the backdrop of the US government's efforts to redirect its significant technological investments away from China and towards India.
Yellen's primary objective during her visit is to establish more effective channels of communication, foster cooperation, and prevent misunderstandings between the two countries. The topics of discussion are expected to encompass various areas, including climate change, the global economy, debt crises, and other pressing issues.
The visit by Yellen follows a period of deteriorating relations between the world's two largest economies, making her the second US cabinet official to visit China this year, following Secretary of State Antony Blinken's visit. Upon her arrival in Beijing, Yellen received a warm welcome from Nicholas Burns, the American ambassador to China, and Yang Ying Ming, a representative of the Chinese Finance Ministry.
During her trip, Yellen will likely address concerns surrounding the recovery of the Chinese economy and the potential ramifications of US interest rate hikes. The US has adopted a more explicit approach to reducing risk and decoupling from China, shifting away from previous ambiguous stances. However, analysts do not anticipate tensions to dissipate rapidly. China expresses dissatisfaction with the US exploring programs to restrict certain foreign investments linked to sensitive technology with potential national security implications. As a result, the US is increasingly looking towards India as a preferred partner for technology investments.
Another area of potential contention is China's anti-espionage law, which may require revision. While the law seeks to prevent the sharing of information related to national security, it recently expanded its surveillance scope, causing concerns among both domestic and foreign businesses.
Tensions between the two countries escalated earlier this year after the US claimed to have shot down a Chinese surveillance balloon, a claim that China vehemently disputed.