U.S., China need ‘tough’ conversations, Yellen tells Chinese Premier Li

U.S.
Treasury
Secretary
Janet Yellen told
Chinese
Premier
Li
Qiang
on
Sunday
that
the
ability
to
have
difficult
conversations
has
put
the
two
economic
superpowers
on
“a
more
stable
footing”
over
the
past
year.

Yellen said
at
start
of
a
bilateral
meeting
with
Li
in
Beijing
that
the
two
countries
had
a
“duty”
to
responsibly
manage
a
complex
relationship,
as
she
brought
her
case
for
reining
in
China’s
excess
factory
capacity
to
the
highest
levels
of
the
Chinese
government.

“While
we
have
more
to
do,
I
believe
that,
over
the
past
year,
we
have
put
our
bilateral
relationship
on
more
stable
footing,” Yellen said
in
prepared
remarks.

“This
has
not
meant
ignoring
our
differences
or
avoiding
tough
conversations.
It
has
meant
understanding
that
we
can
only
make
progress
if
we
directly
and
openly
communicate
with
one
another.”

Yellen has
made
the
threat
of

China’s
excess
production
capacity
for
electric
vehicles,
solar
panels
and
other
clean
energy
products
to
producers
in
the
U.S.
and
other
countries
a
key
focus
of
her
second
visit
to
China
in
nine
months.
She
visited
Beijing
in
July
2023
to
try
to
normalise
bilateral
economic
relations.

On
Saturday
in
Guangzhou, Yellen and
her
main
economic
counterpart,
Vice
Premier
He
Lifeng, agreed
to
launch a
new
dialogue
focussed
on
“balanced
growth”,
a
forum
that Yellen said
she
intends
to
use
to
advocate
for
a
level
playing
field
with
China
to
protect
U.S.
workers
and
businesses.

“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 told
Li.