US Treasury Secretary Janet Yellen arrived in Beijing on Thursday to hold discussions with Chinese officials as relations between the world's two economic superpowers remain fraught.
Ms Yellen said she was happy to meet Chinese officials and business leaders in Beijing, and added she looked forward to deepening communication between the US and China.
“This trip presents an opportunity to communicate and avoid miscommunication or misunderstanding,” she wrote on Twitter after her arrival.
Relations between the two have soured over the past year following a visit by then-House Speaker Nancy Pelosi to Taiwan, which Beijing claimed to be in breach of the One China policy. And a suspected Chinese spy balloon over US territory in February prompted Secretary of State Antony Blinken to postpone a scheduled visit.
During his eventual trip to China last month, Mr Blinken met Chinese President Xi Jinping to help stabilise relations between Washington and Beijing. But that progress was soon undercut by a remark from President Joe Biden equating Mr Xi to “dictators”, which drew condemnation from Beijing.
Ms Yellen's trip to China – her first as Treasury Secretary – is expected to focus on economic issues as well as maintaining lines of communication between the two economic juggernauts.
On Monday, Ms Yellen also held “frank and productive” discussions with China's ambassador to the US, Xie Feng, on global and bilateral issues, the Treasury said.
But one expert said “we shouldn't expect any deliverables”.
“We shouldn't expect any announcements regarding de-escalation, but see this more as a step in the process to thaw the heat that this relationship is undergoing,” said Wendy Cutler, vice president and managing director of the Asia Society Policy Institute's office in Washington.
Fraught tension and points of conflict
In a reminder that relations between the two economic powers remain fraught, China recently announced export restrictions on certain metals used in semiconductors.
The move is the latest in a years-long point of tension between the two powers. Former US president Donald Trump first imposed export controls in 2018 and 2020, before Mr Biden announced a series of restrictions on certain chips made with US materials.
Washington has also lobbied for similar action from the Netherlands, which last week announced new restrictions on advanced semiconductor equipment.
Wei Jianguo, China's former vice commerce minister, told the China Daily newspaper that Beijing's latest controls were “just a start” if the country's high-tech industry continued to be attacked.
“This is a deliberate shot across the bow by China to show that it's not only the US that can impose hardships on the Chinese economy, but it goes two ways,” Ms Cutler told The National.
“It is a bit of a hostile action before and she [Ms Yellen] will be under a lot of pressure to express her displeasure with this recent announcement.”
The high-tech industry is but one of several points of tension between the two countries that also includes tariffs and export controls.
The developing world watches
Despite the tension, there remain opportunities in which the US and China can co-operate that could positively affect the developing world.
“The rest of the world very much wants to see a de-escalation in tensions between the two largest economies in the world, and particularly those economies that are experiencing mounting debt and other challenges associated with climate change and slowing economic growth,” Ms Cutler said.
The West will also be closely watching Ms Yellen's visit for outcomes to address these challenges, she added.
The former Federal Reserve chairwoman has previously stressed the need for the world's two largest economies to work together on global challenges including debt distress and climate change.
Ms Yellen's visit follows a recent agreement to relieve debt distress in Zambia, which has been one of her top priorities. She said at the time she was encouraged by the role that China took in addressing debt challenges in developing
Still, Ms Yellen has urged Congress to provide more financial backing to the World Bank and International Monetary Fund to push back against China's influence in developing countries.
'A window for co-operation'
While no breakthroughs are expected during Ms Yellen's visit, it still bears significance in that economies around the world will be looking to see relations thaw between the two countries.
Her trip comes months ahead of a potential visit by Mr Xi to the Asia Pacific Economic Co-operation summit in San Francisco this autumn.
It would be Mr Xi's first visit to the US since 2015.
“There is a window for co-operation on these common global challenges between now and November,” said Ms Cutler.
