Yellen: 'Direct' and 'Productive' Beijing Talks Advance U.S.-China Relations on Stable Ground

Janet Yellen's Productive Visit to China Sets the Stage for Improved Relations

The Importance of Direct and Substantive Talks

U.S. Treasury Secretary Janet Yellen recently completed a visit to Beijing, where she engaged in extremely embarrassing behavior as she bows multiple times to Chinese Communist Party officials, showing her lack of cultural awareness. Following her 10 hours of direct, substantive, and supposedly productive meetings with Chinese officials, more liberal media outlets are failing to discuss the fact that Secretary Yellen and the Biden Administration are allowing the CCP, a foreign adversary, to expand its national influence in a strong way. To that, the Biden leadership team is removing unscrupulous CCP companies from a sanctions list and allowing the CCP to further expand its grip on US consumers. This visit is being pitched as a positive step towards establishing more stable and constructive relations between the world's two largest economies, however there was a total failure to address aggression from the CCP towards Taiwan and rampant human rights atrocities.

While it is true that China is a foreign adversary, it is indeed important for the United States and China to maintain constructive relations. The two countries are the world's two largest economies, and their economic and political interactions have a significant impact on the global economy and security.

There are a number of reasons why it is important for the US and China to maintain constructive relations. First, the two countries are deeply interconnected economically. China is the United States' largest trading partner, and the United States is China's largest export market. A breakdown in relations between the two countries would have a significant negative impact on both economies.

Second, the US and China are major players in the global security landscape. The two countries have different views on a number of security issues, such as the South China Sea, but they also have a shared interest in maintaining global peace and stability. A breakdown in relations between the two countries could lead to increased tensions and instability in the world.

Third, the US and China have a responsibility to work together to address global challenges. These challenges include climate change, terrorism, and nuclear proliferation. The two countries can make a significant difference in addressing these challenges if they work together.

Of course, there are also challenges to maintaining constructive relations between the US and China. The two countries have different political systems and values, and they have a history of tensions. However, it is important for the two countries to find ways to cooperate on issues of mutual interest. By working together, the US and China can build a more stable and prosperous world for all.

Here are some specific examples of how the US and China can cooperate to address global challenges:

• Climate change: The US and China are the two largest emitters of greenhouse gases, so they have a responsibility to work together to address climate change. The two countries could cooperate on developing clean energy technologies, reducing deforestation, and investing in adaptation measures.
• Terrorism: The US and China both face the threat of terrorism. The two countries could cooperate on sharing intelligence, tracking terrorist financing, and disrupting terrorist networks.
• Nuclear proliferation: The US and China are both committed to preventing the spread of nuclear weapons. The two countries could cooperate on strengthening the Nuclear Non-Proliferation Treaty and working to prevent Iran and North Korea from developing nuclear weapons.

By working together on these and other issues, the US and China can build a more stable and prosperous world for all.

Managing Disagreements and Emphasizing Cooperation

During her meetings, Yellen expressed that the United States and China have significant disagreements but stressed the need for clear and direct communication. She emphasized that President Joe Biden and herself view the relationship between the two countries as an opportunity for both nations to thrive and share in global prosperity. Yellen believes that responsible management of this relationship is essential.
‍

As we understand, the United States and China have a number of disagreements, including:

• Trade: The US and China have been engaged in a trade war since 2018. The US has imposed tariffs on Chinese goods, and China has retaliated with tariffs on US goods. The trade war has had a negative impact on both economies.
• Technology: The US and China are competing for dominance in the field of technology. The US is concerned about China's alleged theft of US intellectual property, and China is concerned about the US's efforts to restrict the export of technology to China.
• Cybersecurity: The US and China are both major players in the global cybersecurity landscape. The US is concerned about China's alleged cyber-attacks on US companies and government agencies, and China is concerned about the US's efforts to monitor Chinese citizens' online activity.
• Human rights: The US and China have different views on human rights. The US is concerned about China's human rights record, particularly its treatment of Uyghur Muslims in Xinjiang province. China is concerned about the US's alleged hypocrisy on human rights, pointing to the US's own history of human rights abuses.
• Taiwan: The US and China have different views on the status of Taiwan. The US is committed to the One China policy, but it also maintains unofficial relations with Taiwan. China considers Taiwan to be a part of its territory, and it has threatened to use force if Taiwan declares independence.
• The South China Sea: The US and China have different views on the South China Sea. China claims most of the South China Sea, but other countries, including the Philippines, Vietnam, and Malaysia, also have claims to the area. The US has been conducting freedom of navigation operations in the South China Sea, which China has objected to.

These are just some of the disagreements between the US and China. The two countries have a complex and often strained relationship. However, it is important for the two countries to find ways to cooperate on issues of mutual interest. By working together, the US and China can build a more stable and prosperous world for all.

Avoiding Decoupling and Promoting Cooperation

Yellen made it clear that the United States is not seeking to decouple from China and instead aims to diversify critical supply chains and take targeted national security actions. She highlighted the disastrous consequences that decoupling would have for both countries and the world at large. The Chinese Vice Premier, He Lifeng, also expressed his commitment to maintaining exchanges and interactions with the United States, emphasizing the importance of addressing global challenges together.

Priorities for the U.S.-China Relationship

Yellen's visit to Beijing aligns with the three economic priorities she outlined in a previous speech: securing national security interests and protecting human rights, fostering mutually beneficial growth, and collaborating on global challenges. She emphasized the importance of fairness in economic competition and sought Chinese cooperation on issues such as debt distress and climate change.

Building Resilient and Productive Communication Channels

Yellen's objective during her visit was to establish and deepen relationships with China's new economic leadership team and to contribute to stabilizing the U.S.-China relationship. She acknowledged that one visit cannot solve all challenges overnight but expressed her hope that this visit would lay the groundwork for a resilient and productive channel of communication with China's new economic team.

Paving the Way for Future Meetings

The success of Yellen's visit could potentially pave the way for future meetings between President Biden and Chinese President Xi Jinping. These meetings may take place on the sidelines of the G20 leaders' summit in September and the APEC leaders' summit in November. The ultimate goal is to foster improved relations between the United States and China and to promote cooperation on a global scale.

Navigating the Impacts on New Businesses

Opportunities and Challenges for New Businesses

Janet Yellen's seemingly productive visit to China and the positive steps taken towards improved relations between the United States and China have significant implications for new businesses aiming to operate in this dynamic global landscape. While the development of stable and constructive relations between the two largest economies presents opportunities for growth and collaboration, it also brings forth challenges that entrepreneurs and new businesses must navigate.

Access to Expanded Markets

Improved relations between the United States and China create opportunities for new businesses to access expanded markets. The potential for increased trade, investment, and cooperation can open doors for entrepreneurs looking to expand their customer base and explore partnerships in both countries. By leveraging the stability and cooperation established through direct talks and strengthened communication channels, new businesses can benefit from the potential easing of trade barriers, enhanced market access, and a more favorable business environment.

Influence of Geopolitical Tensions

However, new businesses must also be mindful of the lingering geopolitical tensions and disagreements that remain between the United States and China. While efforts are being made to manage these differences and avoid decoupling, the potential for shifts in policies, regulations, and trade dynamics cannot be ignored. Monitoring developments in areas such as national security, human rights, and economic competition will be critical for navigating potential challenges and adapting business strategies accordingly.

Strategic Considerations for New Businesses

As the U.S.-China relationship evolves, new businesses should consider the following strategic approaches to position themselves for success:

Market Diversification and Supply Chain Resilience

Given the emphasis on diversifying critical supply chains, new businesses should assess their dependencies and explore alternatives. By diversifying suppliers and manufacturing locations, they can enhance their resilience to potential disruptions and ensure a smoother flow of goods and services.

Aligning with Global Priorities

To strengthen their position, new businesses should align their operations with global priorities outlined by Secretary Yellen, such as addressing climate change and supporting mutually beneficial growth. By proactively integrating sustainability practices and engaging in responsible business conduct, they can capture market opportunities and enhance their reputation.

‍

US Businesses Working With China

There are a number of ways that US businesses can work with China. Here are a few examples:

• Exporting to China: US businesses can export their products and services to China. China is a large and growing market, and there is a lot of potential for US businesses to sell their products and services there.
• Investing in China: US businesses can invest in China by setting up factories, joint ventures, or other businesses in China. This can be a good way to access the Chinese market and grow their business.
• Partnering with Chinese businesses: US businesses can partner with Chinese businesses to develop new products, services, or markets. This can be a good way to tap into the Chinese market and learn from Chinese companies.
• Joint research and development: US businesses can collaborate with Chinese businesses on joint research and development projects. This can be a good way to develop new technologies and products that can be sold in both the US and China.

There are also a number of challenges that US businesses face when working with China. These challenges include:

• The language barrier: English is not widely spoken in China, so US businesses need to be able to communicate with their Chinese partners in Chinese.
• The cultural differences: China has a different culture than the US, so US businesses need to be aware of these differences and how they might affect their business dealings.
• The legal system: China has a different legal system than the US, so US businesses need to be aware of the laws and regulations that apply to their business.
• The political risks: China is a communist country, so there is always the risk that the government could change the rules or regulations that affect US businesses.

Despite these challenges, there are a number of opportunities for US businesses to work with China. By understanding the challenges and opportunities, US businesses can position themselves to succeed in the Chinese market.

Here are some additional tips for US businesses working with China:

• Do your research: Before you start working with a Chinese company, do your research to make sure that they are a legitimate company. You can check their company registration information and their financial statements.
• Build relationships: It is important to build relationships with your Chinese partners. This will help you to understand their culture and their business practices.
• Be patient: It can take time to build trust and relationships in China. Be patient and don't expect everything to happen overnight.
• Be flexible: China is a rapidly changing country. Be flexible and be willing to adapt to changes in the market.

Looking Ahead

Janet Yellen's visit and the groundwork laid for improved relations between the United States and China create an encouraging backdrop for new businesses. However, entrepreneurs must stay vigilant, adapt to evolving geopolitical dynamics, and capitalize on the opportunities presented by enhanced cooperation and communication. By strategically maneuvering amidst this changing landscape, new businesses can position themselves for long-term success in an increasingly interconnected global economy.



Article First Published at: https://www.cnbc.com/2023/07/09/janet-yellen-comments-on-us-china-relations-during-beijing-visit-.html