Janet YellenUndersecretary of Treasury United States of Americait starts this thursday four-day visit Chinese. The trip came after Foreign Minister Antony Blinken’s visit three weeks ago, and after the President, Joe Biden By branding Xi Jinping a “dictator”, he jeopardized the quiet but important diplomatic gains of this mission. This is why the visit of the former head of the Federal Reserve is considered one of the most important. pragmatic Another expectation of the Democratic Administration is eagerly awaited. potentially important moment for Redirect relationships and stop their deterioration.
As treasury sources admit, no expectation of “great achievements” concrete. And aim In a statement regarding Yellen’s visit, which is not planned to meet with Xi, but will meet with senior officials and American businessmen in China, “stabilize the relationshipincrease and deepen the frequency of communicationto avoid misunderstandings and expand cooperation whenever possible“.
HE context couldn’t be more complicated. geopolitical tensions between the two powers on issues such as taiwan or Russia’s war in Ukraine and the Chinese spy bubble that was halted and dropped over the United States, which caused the collapse of already bad relations. solid economic duel As the International Monetary Fund warns, “fragmentation“that will hit and It would slow down the global economy.
“Reduce the risks”
Although the official message of the USA is I’m not looking for “break up” two economies but “reduce risks“The steps taken by Biden’s instruction and those who prepared, raised Bubbles in Beijing. there are democrats tariffs and tariffs Those imposed during the Donald Trump Administration (Yellen’s usefulness is questioned). with the protection argument National Securitysince October last year Limits semiconductor and chip-making machines that can be shipped to China and have banned To companies that receive subsidies to make semiconductors in the US new investments in China.
affecting steps and Stop the Asian giant in the ability to advance the artificial intelligence and other forms of advanced computing needed to power both. armed forces as their economy, its growth slowed after the first recovery after the pandemic. Washington is also put pressure on allies Like the Netherlands and South Korea, it will follow in his footsteps, as China has done in its effort to end its own and global dependence on foreign sources. supply chain.
Biden also spent months laying out a plan. executive order with a program for restrict investments in sensitive technologies for national securityl, expected soon. And this Monday ‘The Wall Street Journal’ reassured the Administration that it’s studying Restrictions on China’s access to cloud computinga route he has so far avoided limitations.
Politicization of economic issues
beijingon his behalf Accuses the US of “politicizing economic problems”As Prime Minister Li Qiang had condemned a few days ago, and maneuvering to inhibit its growth and development. And it doesn’t leave US stocks without it. reply.
in May, veto HE Micron TechnologyThe largest U.S. manufacturer of memory chips used in cell phones, computers and other electronic devices could sell their products to Chinese companies that operate critical infrastructure.
On the same Monday, the following announcement was made at the door of Yellen’s trip: limiting the export of gallium and germanium minerals, dozens of other metals and other materials used in the manufacture of some chips, semiconductors, solar cells, missile systems, telecommunications and electric vehicles. And they are constraints that They threaten not only the United States, but also plans like those of the European Union. to decarbonize its economy (the head of European diplomacy, Josep Borrell, will arrive in Beijing on Monday, a day after Yellen’s departure).
Also, on 1 July China’s new anti-espionage and national security law broadening the definition of espionage and prohibiting the transfer of national security-related information. The norm is released Fears and even paralysis among US companies operating in China.
Also called giant reinforce their self-sufficiency. And in Bilateral trade with the USAtotal in 2022 $690,000 million reduces Beijing imports to $154,000 millionexports reached 536,000 million units.
personal ties
For YellenHe recently told ‘The Wall Street Journal’ that he was thinking:especially important for developing personal relationships“And that they discussed the most thorny issues privately at a meeting in Switzerland in January with former Chinese vice premier Liu He,” said Liu He.
Among these new senior officials He Lifeng, Xi’s confidant comforting Liu in March and Pang Gongshenghas worked in commercial banking, held positions at Harvard and Cambridge, has led monetary policy since 2016 and is currently Maximum representative of the Communist Party in the Central Bank Chinese.
Yellen can also be expected to increase the pressure on China as it tries to join the deal. debt restructuring plans for developing countries. With $500 billion in loans to these countries, Beijing has become a major creditor for many and has resisted global efforts to help struggling nations, but last month it Principle according to Zambia Sealed in Paris, one step Yellen applauds “more constructive”” Chinese.
If Yellen follows the three-pillar economic scenario for the bilateral economic relationship that she outlined in a speech she gave in April, human rights. And you are also expected to show your concern and ask for corrective actions The Chinese that the US considers compelling towards other countries and practices that it sees as outside market norms.
It will also be on the table. The weakening of the yuanIt is believed to be generally artificially produced by the United States, but is now partly due to the Federal Reserve’s rate policies. And the truth is, its price is close to its lowest level since 2008 against the dollar, which has affected the US. more competitive Chinese exports.