Treasury Secretary Janet Yellen appealed to China’s No. 2 leader not to let frustration over U.S. curbs on access to processor chips and other technology disrupt economic cooperation during a visit Friday aimed at improving strained relations.
Meeting with Premier Li Qiang, Yellen said Washington and Beijing have a duty to cooperate on issues that affect the world. She appealed for “regular channels of communication” at a time when relations are at their lowest in decades due to disputes over technology, security and other irritants.
Yellen is one of several senior U.S. officials due to visit Beijing to encourage Chinese leaders to revive interactions between governments of the two largest economies. Treasury officials said earlier she wouldn’t meet with Chinese leader Xi Jinping and no breakthroughs were expected.
Yellen defended “targeted actions,” a reference to curbs on Chinese access to advanced processor chips and other technology, saying they are needed to protect national security.
“You may disagree,” Yellen said. “But we should not allow any disagreement to lead to misunderstandings that needlessly worsen our bilateral economic and financial relationships.”
Yellen appealed for “healthy economic competition,” a reference to complaints Beijing is stepping up use of subsidies and market barriers to protect its companies.
“A fair set of rules will benefit both of our countries,” Yellen said. “We also face important global challenges where the United States and China have a duty to both countries but also to the world to cooperate.”
Li expressed optimism that conditions might improve but gave no indication of possible changes in Chinese policies that have irked Washington and its trading partners.
Referring to a rainbow that was spotted after Yellen’s plane landed Thursday in rainy weather, Li said, “after a round of wind and rain, we will definitely see more rainbows.”
