US and China must communicate clearly on disagreements: Yellen

US Treasury Secretary Janet Yellen underscored the importance of clear and direct communication between the United States and China, saying that the two countries have significant disagreements that must be addressed. 

Yellen's remarks came after 10 hours of bilateral meetings with senior Chinese officials at the conclusion of her four-day trip to Beijing. Despite acknowledging the differences, Yellen stressed that President Joe Biden and herself do not view the relationship as a great power conflict, believing that both countries can thrive in the world together.

"The US and China have significant disagreements," Yellen told reporters, addressing a press conference at the US embassy in Beijing.

"But President (Joe) Biden and I do not see the relationship between the US and China through the frame of great power conflict. We believe that the world is big enough for both of our countries to thrive."

During her visit, Yellen aimed to establish and strengthen ties with China's new economic team, fostering understanding and cooperation on issues such as climate change and debt distress. She noted that the United States is not seeking to decouple from China's economy, as doing so would be detrimental to both nations and destabilising for the world. Instead, the US is advocating for an open, free, and fair economy that does not force countries to choose sides.

Yellen also raised concerns about what she referred to as China's unfair economic practices and recent coercive actions against American companies. She underlined the need for healthy economic competition that benefits both sides, highlighting the importance of responsible management in the US-China relationship. "Healthy economic competition is only sustainable if it benefits both sides," she said.

Yellen also addressed the issue of Russian aggression in Ukraine, urging Chinese firms to refrain from supporting Russia in the conflict or evading sanctions.

While no breakthroughs were expected during the talks, both sides hailed the opportunity for face-to-face diplomacy. Yellen's visit followed Secretary of State Antony Blinken's trip to Beijing and aligns with the Biden administration's efforts to engage with China on multiple fronts. The US aims to establish a resilient and productive channel of communication with China's new economic team, with the possibility of a meeting between President Biden and Chinese President Xi Jinping in the near future.