U.S. Treasury Secretary Janet Yellen and her team have wrapped up discussions in China, focusing on key issues impacting the economic relationship between the two nations. One major concern addressed during the talks was the issue of unfair trade practices. Yellen highlighted the Biden administration's contention that China's economic model and trade policies create an uneven playing field for American companies and workers. Specifically, the dominance of Chinese industries in areas such as solar products, electric vehicles, and lithium-ion batteries due to heavy subsidies and overcapacity was a focal point.
Both sides agreed to engage in 'intensive exchanges' to promote more balanced economic growth, acknowledging the importance of addressing these disparities over time.
Another significant outcome of the discussions was the agreement between the U.S. Treasury and the Chinese central bank to collaborate on combating money laundering, particularly in relation to the trafficking of fentanyl precursor chemicals. This joint effort aims to disrupt the flow of these substances into the U.S. and Mexico, underscoring the commitment to enhancing international cooperation in combating financial crimes.
Regarding the contentious issue of the social media app TikTok, owned by Chinese company ByteDance, little progress was made during the talks. While China presented a data security plan to allay national security concerns, the U.S. continues to pursue measures to address potential risks associated with the app.
Furthermore, both countries announced plans to enhance financial stability by conducting simulations of large bank failures and coordinating responses to prevent systemic risks. Yellen emphasized the importance of effective communication between American and Chinese financial regulators to avert financial crises that could have global repercussions.
Yellen's visit to China also garnered attention for her culinary adventures, with her dining experiences becoming a topic of interest among Chinese officials and social media users. From sampling Sichuan cuisine to enjoying local craft beer, Yellen's gastronomic explorations added a personal touch to her diplomatic mission.
