US and China shouldn't 'ignore differences or avoid tough' conversations, Yellen tells Chinese Premier Li

US Treasury Secretary Janet Yellen and Chinese Premier Li Qiang engaged in important discussions on Sunday, during which Yellen told Li that the ability to have such conversations over the past year has helped the US and China come to a 'more stable footing.'

Li echoed the sentiment and emphasised the need for mutual respect and partnership between the United States and China. He said that the two countries should be partners and not adversaries and that the US Treasury Secretary's trip has been good for both nations.

Add WION as a Preferred Source

“While we have more to do, I believe that, over the past year, we have put our bilateral relationship on more stable footing. This has not meant ignoring our differences or avoiding tough conversations. It has meant understanding that we can only make progress if we directly and openly communicate with one another,” Yellen said.

Addressing economic concerns - EV surplus

Yellen's second visit to China in nine months also aimed to address concerns regarding China's excessive production in sectors such as electric vehicles (EVs) and clean energy products. This surplus capacity has affected not only the US producers but also global players.

During her visit to Guangzhou, Yellen and Vice Premier He Lifeng agreed to initiate a dialogue focused on achieving balanced growth. Yellen emphasised the need for fair competition to protect American workers and businesses.

"As the world’s two largest economies, we have a duty to our own countries and to the world to responsibly manage our complex relationship and to cooperate and show leadership on addressing pressing global challenges," Yellen said.

Building stability through direct communication

Yellen visited Beijing in July 2023 for the first time when there were tensions between the two nations because of trade disputes and COVID origin theories. Her first visit sought to stabilise the relationship between the world's two biggest economies

Earlier this week US President Joe Biden had a telephone conversation with his Chinese counterpart Xi Jinping. In a nearly two-hour-long call they discussed the South China Sea.