Yellen Sees ‘More Work to Do’ as China Talks End With No Breakthrough

The economic meetings between the United States and China concluded in Beijing on Monday with no major breakthroughs, but both countries agreed to continue discussions on trade, investment, and national security.

The upcoming conversations are expected to be challenging as the relationship faces political obstacles, especially with the United States in an election year and growing anti-China sentiments. Treasury Secretary Janet L. Yellen’s efforts to address China’s green energy technology exports were met with resistance.

Despite a cordial reception during her visit, Yellen acknowledged that trust between the two sides is limited and emphasized the need for further work and uncertainty about the future of the relationship.

Yellen also met with Chinese officials to discuss balanced growth and the impact of China’s exports on global markets. The discussions will continue on sensitive issues like Chinese exports of electric vehicles and other products that could affect American industries.

China denies subsidizing its new energy exports and raised concerns about unfair protectionism. The issue of Chinese exports is a point of contention between the two countries, with China urging the U.S. to adhere to market norms and avoid politicizing trade issues.

The possibility of additional American tariffs looms as China seeks a rollback of tariffs imposed during the Trump administration. Both sides are navigating trade tensions and the challenges of protecting their industries.

The discussions also touched on U.S. national security measures targeting China, including restrictions on technology and concerns about Chinese companies like ByteDance. Both countries are working through complex issues related to national security and trade.

The Biden administration faces pressure from lawmakers to decouple the economies through investment restrictions and tariffs, while China seeks reassurances that decoupling is not the goal. Yellen emphasized the importance of maintaining trade and investment ties between the two countries.

Siyi Zhao contributed reporting from Seoul.