Yellen sees 'progress' in rocky US-China ties

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STORY: U.S. Treasury Secretary Janet Yellen's four-day Beijing trip ended on Sunday (July 9). Before departing China, Yellen said 10 hours of meetings with senior Chinese officials in recent days were "direct" and "productive." She added the United States and China remained at odds on a number of issues but expressed confidence that her visit had advanced efforts to put the relationship on "surer footing"."The U.S. and China have significant disagreements. Those disagreements need to be communicated clearly and directly. But President Biden and I do not see the relationship between the U.S. and China through the frame of great power conflict. We believe that the world is big enough for both of our countries to thrive."U.S.-China relations are at a low over national security issues, including Taiwan, U.S. export bans on advanced technologies and China's state-led industrial policies.Washington has been trying to repair ties between the world's two biggest economies.A senior Treasury official said the trip, as expected, did not result in specific policy breakthroughs.But was "very successful" in terms of "re-establishing contact" and building relationships.Yellen met with Premier Li Qiang and People's Bank of China Deputy Governor Pan Gongsheng. She urged more cooperation between the sides on economic and climate issues....while criticizing what she called "punitive actions" against U.S. companies in China. She reiterated that Washington was not seeking to decouple from China's economy.The U.S. has implemented export controls designed to restrict China's ability to acquire high-tech microchips that Washington fears could have military applications. The U.S. government is also considering an executive order to curb U.S. investment in sensitive areas."And I emphasised that it would be highly targeted, and clearly directed, narrowly, at a few sectors where we have specific national security concerns."Yellen stressed that any executive order would not be for economic gain and talked through what such an order "might look like" with her Chinese counterparts, according to the senior treasury official.
 
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