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April 9, 2024
In a bid to recalibrate economic relations, US Treasury Secretary Janet Yellen concluded her high-profile visit to China with a pointed call for the nation to reconsider its economic growth strategy. Yellen's visit, her second in nine months and possibly her final as Treasury Secretary, underscored the complex dynamics between the world's two largest economies.
During her four-day visit, Yellen navigated a delicate balance between strengthening bilateral ties and criticizing certain global practices of the Chinese government. Central to her message was a warning about the risks posed by China's economic imbalances and its heavy-handed support for specific industries. Yellen stressed that these practices could adversely affect American and global workers.
Highlighting the urgency of the situation, Yellen urged China to shift its focus towards bolstering domestic demand rather than aggressively expanding its industrial capacity. This plea comes amidst President Xi Jinping's pursuit of ambitious growth targets, particularly in manufacturing.
While Yellen's message received a respectful hearing in China, it remains to be seen whether it will translate into tangible policy changes. Previous disputes over trade subsidies and allegations of unfair competition further underscore the complexities inherent in the US-China economic relationship.
Yellen's visit serves as a stark reminder of the ongoing tensions between the two economic giants and the challenges involved in finding common ground on trade and economic policies. As both nations strive to navigate these complexities, the outcome of Yellen's diplomatic overture holds significant implications for the future trajectory of US-China relations and the global economic landscape.
