BEIJING (AP) — Treasury Secretary Janet Yellen is visiting Beijing as part of efforts to revive U.S.-China relations that are at their lowest level in decades due to disputes over technology, safety and other irritants.
Presidents Joe Biden and Xi Jinping met in November and agreed to improve relations between the world’s largest economies and major trading partners. But neither government has shown a willingness to make major policy changes.
“We hope the United States will take concrete measures to create an environment conducive to the healthy development of economic and trade relations,” China’s finance ministry said in a statement on Friday.
He expressed hope for “achieving mutual benefits and win-win results,” but did not suggest any Chinese concessions.
Yellen’s visit follows that of Secretary of State Antony Blinken, who met Xi last month in Beijing in a meeting that lasted just 30 minutes.
Here’s a look at some areas of contention.
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POLITICAL RELATIONS
US-China relations are riven by disputes over technology, security, human rights, Beijing’s assertive overseas policy and its support for Russia during its war on Ukraine. Despite an agreement between Biden and Xi to improve relations at a meeting in Indonesia in November, ties soured after a Chinese surveillance balloon drifted over the United States in February and was shot down. Secretary of State Antony Blinken visited Beijing in June as part of the highest-level US visit in five years and had a meeting with Xi that lasted just 30 minutes.
EXPORT CONTROLS
The United States has blocked Chinese access to advanced processor chips and other technologies for security reasons. Beijing has been slow to retaliate, perhaps to avoid disrupting young Chinese developers of artificial intelligence and other technologies. But this week, Beijing announced export controls on two minerals used in semiconductors and solar panels: gallium and germanium. In May, China banned the use of products from the largest US memory chip maker, Micron Technology Inc., in computers that process sensitive information, saying they had unspecified security flaws but did not gave no explanation.
RUSSIA AND UKRAINE
Xi’s government has said it had a “boundless” friendship with Moscow ahead of its invasion of Ukraine in February 2022. Beijing has given political support to President Vladimir Putin’s government and has blocked United Nations efforts to criticize the Kremlin. China has also stepped up its purchases of Russian oil and gas, helping to offset revenue losses from Western sanctions. Washington has warned Beijing not to provide military support.
TERRITORIAL DISPUTES
The United States rejects China’s claim to sovereignty over most of the South China Sea, where Beijing has built artificial islands and stationed naval forces. Chinese claims overlap with those of Vietnam, Malaysia and US ally the Philippines. Washington and its allies have sent warships across the sea to assert their “freedom of navigation”. Beijing rejects this and says the United States is adding to tensions in the region. China also claims Taiwan’s self-governing island democracy as part of its territory. Xi’s government has stepped up efforts to intimidate Taiwan’s elected government by flying fighter jets near the island and launching missiles into the sea. US politicians, including then-President Nancy Pelosi of the United States House of Representatives, traveled to Taiwan to show their support.
DECOUPLING OR DERISKING?
Businessmen warn that the world could decouple or split into separate markets with incompatible industry standards and products, as the United States and China tighten export controls and try to reduce their dependence on each other . They say it would slow economic growth and innovation. Yellen warned that the decoupling would be a disaster. Treasury officials said ahead of her trip that she would convey that message to Chinese officials. “There will be no winners in trade wars or ‘decoupling and broken chains’,” China’s finance ministry said. There are also deep financial ties: China stores some of its trade surpluses and foreign currency reserves in Treasury debt, which helps fund US government budget deficits.
SPACE FOR COOPERATION
Treasury officials said Yellen plans to encourage Chinese officials to work with Washington on areas of common interest, including climate change. China signed an agreement last month to reduce debts owed by the Zambian government. Treasury officials cited this as an example of areas where cooperation has produced results.