US Has No Plans for Yellen's China Visit... China Secretly Welcomes It

Chinese Media Suggests Yellen May Discuss US Debt Issues During China Visit
Cooperation with China Could Be a Bonus for Biden's Midterm Elections Next Year

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese media have expressed the view that if Janet Yellen, the U.S. Treasury Secretary, visits China, China could cooperate on the U.S. debt issue.

China's state-run Global Times reported on the 13th that the consideration of Yellen's visit to China is interpreted as a willingness to expand communication with China. The media also analyzed that the U.S. government conveyed to foreign media its request for the Chinese government to invite Secretary Yellen.

[Image source=Yonhap News]

Professor Xi Junyang of Shanghai University said, "It appears that the Biden administration is reviewing its policy toward China," adding, "It seems they want to discuss the mutual economic interests of both countries and seek reciprocal cooperation."

The Global Times conveyed the atmosphere within the U.S., stating that American companies have been continuously urging the Biden administration to withdraw hostile policies toward China. It further claimed that if Secretary Yellen visits China, China could discuss issues related to U.S. debt, including Treasury bonds.

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences, said, "The U.S. is currently facing debt issues such as Treasury bonds," and diagnosed, "The U.S. likely hopes that China will express confidence in the U.S. economy or provide assistance such as additional purchases of U.S. Treasury bonds."

In this regard, the Global Times added that from March to May, over three months, the Chinese government reduced its holdings of U.S. bonds by as much as $26.2 billion.

In fact, Secretary Yellen urged the U.S. Congress on the 9th (local time) to raise or suspend the debt ceiling. She emphasized, "Most of the U.S. debt was incurred before the Biden administration took office," and warned, "If no action is taken, irreversible damage could occur to the economy and the livelihoods of the American people."

The media also presented China's demands. It argued that tariffs imposed on Chinese products are rather a burden on the U.S. economy and that these tariffs should be abolished.

Song Guoyou, Deputy Director of the U.S. Research Center at Fudan University, said, "If Secretary Yellen visits China, it is highly likely that she will discuss follow-up measures to the China-U.S. Phase One trade agreement, but Yellen's potential visit does not mean a restoration of China-U.S. relations."

The Global Times cited experts, claiming that Yellen's visit to China could directly affect next year's U.S. midterm elections. It emphasized that China's large-scale purchase of U.S. products helps the U.S. economy, which would be a bonus for Biden ahead of the midterms.

Meanwhile, Treasury Department spokesperson Lily Adams denied the visit, stating, "Secretary Yellen has no plans to visit China this fall."

This content was produced with the assistance of AI translation services.