Unveiling the US-China Strategy: Treasury Secretary Janet Yellen's 2024 Gameplan
Treasury Secretary Janet Yellen takes a proactive approach to strengthen the crucial bond between the US and China, intensifying her efforts in the upcoming year
Sign up for CNN's Meanwhile in China newsletter to learn about the country's burgeoning influence and its global implications. Treasury Secretary Janet Yellen is dedicated to improving the delicate but crucial relationship between the United States and China, with plans to ramp up efforts next year.
Yellen is set to unveil her 2024 strategy for US-China relations in a speech to business leaders on Thursday evening. In the speech excerpts obtained by CNN, Yellen will outline her goals for strengthening economic ties between the two nations, including improving communication, increasing transparency from Beijing, enhancing regulatory cooperation, and addressing challenges such as terror financing and fentanyl trafficking.
Yellen's upcoming remarks at the US-China Business Councils 50th anniversary dinner in Washington will mark her first public discussion of her 2024 goals for the US-China economic relationship.
"We do not expect to resolve all our disagreements or prevent all unexpected events. It's not feasible," Yellen intends to convey. "However, our goal is to establish strong and effective communication so that when we do disagree or face unexpected events, we can prevent misunderstandings from escalating and causing harm."
By the end of 2023, the US-China relationship, widely considered the most crucial bilateral relationship globally, is in a significantly improved state compared to the beginning of the year. Tensions had reached a nadir in February when US President Joe Biden authorized the interception of a Chinese spy balloon.
However, recent months have seen a de-escalation of tensions, leading to high-level visits to China by US officials such as Yellen and Secretary of State Antony Blinken. This positive trend was underscored by a four-hour meeting between Biden and Chinese leader Xi Jinping last month.
US officials are now looking to capitalize on this progress. According to a source familiar with the matter, Yellen is aiming to revisit China in the first half of next year, indicating their satisfaction with the recent developments. The plans for the return visit to China are still pending.
Yellen intends to express in her speech on Thursday that her second trip to China as Treasury secretary will primarily address challenging topics with her counterpart. In November, after meeting with Chinese Vice Premier He Lifeng, she mentioned her anticipation of traveling to China at some point the following year.
Yellen's speech on Thursday will recognize that there are still obstacles ahead in the US-China relationship.
"We are aware that this partnership will continue to encounter difficulties. There are numerous issues where the US and China fundamentally disagree," Yellen intends to state. "There is also the constant risk of unexpected events that affect both of our nations."
Yellen plans to signal US officials' continued commitment to imposing new limits on outbound investments to China and addressing national security concerns. "Maintaining stability in our relationship to prevent escalation may not grab headlines," says Yellen, "but it will contribute to the safety and security of our economies, our people, and those around the world."
The speech follows the recent release of a report by the House Select Committee on the Chinese Communist Party, which outlines a bipartisan strategy to "fundamentally reset" Americas relationship with China.
Republican Chairman Mike Gallagher and Democratic ranking member Raja Krishnamoorthi stated, "It acknowledges the undeniable need to reset our current economic relationship with the Peoples Republic of China in order to prioritize the economic and national security interests of the United States."
Business leaders and global investors around the world have been anxiously monitoring China's handling of a real estate crisis that is impeding its economic growth. The implications are enormous given China's status as the world's second-largest economy and a crucial driver of global economic expansion.
Yellen intends to urge Beijing to provide greater transparency on their proposed solutions to these issues, especially if they escalate.
"According to Yellen, financial shocks in China cannot be viewed in isolation. It is essential for policymakers in the United States to understand China's plans and response to challenges such as local government debt, the real estate market, and unexpected weakness in its economy. In recent developments, US officials have been engaging in meetings with China to address economic and financial market concerns through working groups."
In the coming year, there are plans for the United States and China to enhance communication and collaboration between their financial regulators, as mentioned by Yellen. This is a practice that US officials already engage in with both the European Union and the United Kingdom. Yellen will emphasize the importance of knowing and being able to quickly reach out to counterparts in times of financial turbulence for economic policymakers.
