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SONG CHEN/CHINA DAILY
US Treasury Secretary Janet Yellen's second visit to China in nine months marks a significant milestone in the ongoing efforts to foster constructive dialogue and cooperation between the two largest economies of the world. Against the background of a fast-changing international situation and the ups and downs in bilateral relations, Yellen prioritized addressing key trade issues that impact the interests of both the United States and China.
During her discussions with senior Chinese officials, Yellen emphasized the importance of mutual cooperation while acknowledging the existence of major differences between the two countries. Central to her agenda was the issue of China's trade practices, which have been a source of concern for US companies and workers. Yellen's focus on addressing these disparities underscores the importance of creating a level playing field for all stakeholders involved.
One of the key issues highlighted by the Treasury secretary during her visit, which concluded on Tuesday, is the challenge of China's "overcapacity", which has significant implications for global trade dynamics. She said China's "overcapacity" can lead to spillover effects that would affect economies across the world. Managing "overcapacity" requires concerted efforts and market-based reforms, ensuring fair competition and sustainable economic growth for both US and Chinese industries.
Besides, Yellen's visit to Guangzhou to meet with Chinese and US business leaders from the American Chamber of Commerce in China holds strategic significance, given Guangzhou's status as a manufacturing hub and home to prominent Chinese companies. The visit underscores the importance of engaging with key stakeholders in regions driving innovation and technological advancement. While addressing concerns about trade restrictions, Yellen emphasized the importance of collaboration on pressing global issues such as climate change.
Despite differences on certain issues, Yellen's visit signifies a strong commitment to open and direct communication between the US and China. Both countries recognize the importance of maintaining dialogue to address areas of disagreement and foster greater understanding. And her positive remarks on Chinese cuisine during her visit highlight the importance of cultural exchanges in contributing to strengthening of bilateral relations.
The Treasury secretary's message to Beijing regarding the impact of "subsidized" exports on American jobs underscores the need for cooperative solutions to shared challenges. Yellen's visit should serve as a positive step forward in building a new era of US-China relations characterized by mutual respect, cooperation and sincere communication.
The visit signals a significant opportunity to enhance cooperation and address long-standing issues in the bilateral relationship. By fostering open dialogue and seeking common ground, both sides can work toward a future of shared prosperity and stability. As we navigate the complexities of the global economy, constructive engagement between the US and China remains essential for addressing common challenges and building a brighter future for all.
The author, is chairman of Lehman-Bush, a US financial services firm headquartered in China. The views don't necessarily reflect those of China Daily.
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