"Not Decoupling"... US and China Join Hands Ahead of Biden-Xi Jinping Meeting

Yellen and He Lifeng Agree to Strengthen Direct Communication in Talks
Yellen: "Foundation for Summit"

On the 15th, ahead of the US-China summit, the economic leaders of the two countries met and confirmed that they would not seek decoupling (separation of supply chains, etc.) but pursue a healthy economic relationship.

On the 10th (local time), the US Treasury Department announced in a press release that US Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng exchanged such views from the previous day until that day in San Francisco. Ahead of the summit between US President Joe Biden and Chinese President Xi Jinping on the 15th, both sides agreed to strengthen communication and establish a US-China economic and financial working group, with Secretary Yellen and Vice Premier He continuing direct communication.

Secretary Yellen, who visited China for the first time in July, decided to visit China again next year, and Vice Premier He expressed his welcome for the revisit. In the talks and press conference, Secretary Yellen said, "It is important for the two countries to responsibly manage their economies by maintaining resilient communication channels," adding, "We agreed that it is especially important to have in-depth and candid discussions when there are differences in opinions during the talks." She continued, "I am confident that today's discussions helped provide an additional foundation for a productive meeting between President Biden and President Xi."

U.S. Treasury Secretary Janet Yellen (right) and Chinese Vice Premier He Lifeng shake hands on the 9th (local time) in San Francisco, USA, ahead of the bilateral summit.
[Image source=Reuters Yonhap News]

Both sides also emphasized during the talks that they would not seek economic decoupling between the two countries. They welcomed the goal of a healthy economic relationship that provides a level playing field for companies and workers of both countries and benefits the peoples of both nations. However, they raised concerns about the impact of China's non-market policies and practices on US companies and workers, stating, "A rules-based fair competitive environment is necessary for healthy economic competition." Secretary Yellen conveyed that "China indicated a willingness to provide additional market access to other sectors over time."

Secretary Yellen also expressed concerns about China's export controls on critical minerals such as graphite and emphasized that Chinese companies should not provide material support to Russia's defense industry sector. She said, "If Chinese companies provide support to Russia's defense industry sector, they will face significant consequences."

She further stressed to Vice Premier He that the US hopes China will crack down on companies supporting Russia's defense industry sector. Regarding US export control measures against China, she reiterated that they are conducted narrowly based on clearly defined national security concerns.

Secretary Yellen and Vice Premier He agreed to cooperate on economic growth, financial stability, regulatory issues, climate change, and debt issues of low-income and emerging economies. The Treasury Department stated in the press release that they also agreed to strengthen the international financial architecture, including measures to reflect the voices of marginalized member countries and regions through quota increases at the International Monetary Fund (IMF).

Additionally, Secretary Yellen and Vice Premier He discussed the domestic and international macroeconomic and financial situation during the talks. Secretary Yellen said, "The US and global economic outlook remains resilient," but noted that risks to the global economy persist due to the wars in Ukraine and the Middle East. Both sides exchanged views on China's economic development situation. The US Treasury Department evaluated the talks as "frank, direct, and productive discussions on a wide range of issues" in the press release.

Meanwhile, on the same day, the Chinese Ministry of Foreign Affairs announced that President Xi will attend the Asia-Pacific Economic Cooperation (APEC) summit held in the US next week and hold a summit meeting with President Biden. Hua Chunying, spokesperson for the Chinese Ministry of Foreign Affairs, stated that President Xi will visit San Francisco, USA, from the 14th to the 17th to attend the APEC meeting at the invitation of President Biden.

This summit will be the second face-to-face summit between President Biden and President Xi. The dialogue channels between the two countries, which had been closed since the Chinese reconnaissance balloon incident shot down over US airspace in February this year, resumed as Secretary of State Antony Blinken, Secretary Yellen, and Secretary of Commerce Gina Raimondo visited China successively from June to August.

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