US Yellen's Visit to China from 6th to 9th: "Will It End the Vicious Cycle of Blame and Retaliation?"

U.S. Treasury Secretary Janet Yellen's visit to China has been confirmed for June 6-9. Less than a month after Secretary of State Tony Blinken visited China and met with Chinese President Xi Jinping, Secretary Yellen will also visit China. Attention is focused on whether this visit will find a significant breakthrough in improving U.S.-China relations or lead to another vicious cycle of criticism and retaliation.

On June 2 (local time), the U.S. Treasury Department confirmed Yellen's visit in a statement, saying she plans to discuss responsible management of bilateral relations, direct communication on areas of concern, and the importance of cooperation to address global challenges. The Chinese Ministry of Finance also confirmed Yellen's visit on June 3.

The two countries have experienced worsening conflicts over several years due to trade tensions that began during the Trump administration, competition for dominance in advanced technology sectors, and the Taiwan issue. Relations, which had reached an extreme point following the incident of a Chinese reconnaissance balloon entering U.S. airspace earlier this year, began to shift after Secretary Blinken visited China last month and met with President Xi.

Foreign media reported that Yellen, who is responsible for the U.S. economy, is expected to comprehensively discuss economic issues during this visit. While Yellen hopes to maintain links with China in areas such as trade and investment, the Chinese side is expected to focus on finding ways to overcome challenges such as the delayed economic recovery.

Foreign media anticipate that Yellen will meet with Chinese Vice Premier He Lifeng and possibly with Premier Li Qiang, the top official in China's economic sector, although the likelihood of a meeting with President Xi is considered low. A meeting with Yi Gang, Governor of the People's Bank of China, is also likely.

Yellen emphasized the necessity of maintaining relations with China, aware of the global economic slowdown caused by U.S.-China conflicts and divisions, stating, "The collapse of U.S.-China relations would pose a great risk to the global economy and security." She also remarked at a House Financial Services Committee hearing last month that "decoupling (excluding China from industrial and supply chains) would be a big mistake for the U.S."

The Washington Post (WP) reported that the visit is expected to address not only issues such as the restructuring of supply chains in the U.S. advanced technology industry but also broader topics like debt relief for developing countries and cooperation on climate change.

However, it is also anticipated that friction points exist, such as the U.S. efforts to restructure supply chains by decoupling from China in advanced technology sectors like semiconductors and electric vehicle batteries.

Additionally, Yellen is expected to exchange views with Chinese officials on macroeconomic policy directions, including interest rates and exchange rates, which connect the two economic powers to the global economy. The value of the yuan against the dollar is approaching its lowest level since the 2008 financial crisis.

Janet Yellen, U.S. Secretary of the Treasury. [Photo by AFP]

The U.S. is reportedly considering further restrictions on investments related to sensitive technologies critical to national security concerning China, and discussions are expected on sensitive issues such as China's recent raid on a U.S.-based consulting firm as part of strengthening its Counter-Espionage Law. These topics are also anticipated to be addressed.

A Treasury Department official stated that the U.S. does not expect a major breakthrough from Yellen's visit but aims to stabilize relations with China and establish long-term communication channels.

On the other hand, while Secretary Blinken, who visited China earlier, mainly communicated the U.S.'s principled stance on U.S.-China competition and discussed ways to avoid military conflict, it is speculated that Yellen's discussions, focusing on economic matters, may emphasize more cooperative and mutually beneficial approaches.

The Wall Street Journal (WSJ) reported, "The U.S. and China have started talking again," adding, "The key now is whether the two economic giants connected to the global economy will settle into a new normal that does not shake the world economy or fall back into a vicious cycle of blame and retaliation."

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