Yellen’s visit comes at a time of heightened tensions between the U.S. and China over trade practices and technology competition. She is expected to address concerns about China’s industrial overcapacity, unfair trade practices, and restrictions on technology exports. The U.S. has accused China of trying to export its overcapacity and dominate new technology sectors, such as green energy and electric vehicles. China, in turn, has defended its growth in these areas as necessary for global green development and a result of market demand.
During her visit, Yellen met with business representatives from the U.S., Europe, and Japan to hear their concerns about trade and competition in China. She is seeking a level playing field for American companies and workers, and is expected to push Beijing to bolster domestic consumption, ensure fair competition in new technology sectors, and provide adequate market access for U.S. companies. The U.S. delegation is likely to engage in tough talks with Chinese government officials on these issues, as well as on broader economic and trade relations between the two countries.
China has pushed back against the U.S. and Europe’s concerns about overcapacity, arguing that its growth in sectors like EVs and solar is beneficial for global green development. The Chinese Foreign Ministry spokesperson criticized the U.S. for restricting technology exports to China, accusing it of interfering with free trade and creating risks for international trade. The ongoing trade and technology disputes between the two countries have strained their economic relationship and raised concerns about the future of global trade and competition.
Yellen’s visit to Guangzhou, a major industrial and export hub in China, highlights the importance of the region in the country’s economy. Guangdong province is known for its manufacturing and export industries, making it a key player in China’s economic growth and global trade. Yellen’s meetings with local officials and businesses in Guangzhou provide her with a firsthand look at the economic dynamics and challenges facing China, as well as an opportunity to discuss ways to address trade and competition issues between the U.S. and China.
As the first Cabinet-level official to visit China since President Biden met with Chinese leader Xi Jinping, Yellen’s trip is seen as an important step in the Biden administration’s efforts to engage with China on economic and trade issues. Her discussions with Chinese officials are expected to set the tone for future interactions between the two countries and could impact the prospects for resolving their trade disputes. The U.S. is seeking to address concerns about unfair trade practices and promote a more level playing field for American companies in China, while China is defending its economic growth and global trade practices in the face of international scrutiny.
