Janet Yellen’s Beijing visit suggests US-China economic reality may be starting to bite

On China, Biden is faced with both a political problem, represented by his secretary of state, and an economic reality, represented by the Treasury secretary

Yellen’s visit suggests economics may be starting to play a larger role in the bilateral relationship, but the US will need to demonstrate consistent sincerity to see improvement in ties

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US Treasury Secretary Janet Yellen speaks with reporters at the Centre for Innovative Technology campus in Herndon, Virginia, on October 21, 2022. Yellen’s trip to China is expected to make some headway in improving bilateral relations. Photo: AP

Daryl Guppy

Daryl Guppy is an international financial technical analysis expert.

Published: 4:45pm, 6 Jul 2023

US Treasury Secretary Janet Yellen’s trip to Beijing is part of the Biden administration’s push to reinstate lines of communication with its Chinese counterpart. A senior Treasury official told reporters that the intent of the trip is to “deepen and increase the frequency of communication” between the two countries, “stabilise the relationship, avoid miscommunication and expand collaboration where possible”.

The intent, if genuine, is welcome. However, that intent is undermined by the persistent perfidy of the United States. Perfidy is the state of being deceitful and untrustworthy, and it is against this background that Yellen’s visit must be assessed.

Less than three weeks ago, US Secretary of State Antony Blinken visited China and took pains to make it clear that his country does not support Taiwan independence.

Taken at face value, this was a welcome commitment, but within days of Blinken’s return to the United States, he not only accused Beijing of acting in a manner “antithetical” to the status quo, but also endorsed US President Biden’s insulting remarks about Chinese President Xi Jinping, including calling him a dictator.