U.S. Treasury Secretary Janet Yellen arrives at Beijing Capital International Airport, China, July 6, 2023. /CFP
Editor's note: Anthony Moretti is an associate professor at the Department of Communication and Organizational Leadership at Robert Morris University. The article reflects the author's opinions and not necessarily those of CGTN.
There is always a risk in placing too much stock in symbolism, but the now regular visits by U.S. officials to Beijing suggest China's ascendency in the relationship.
In rapid succession over the past six weeks, Assistant Secretary of State Daniel Kritenbrink led one delegation, which was followed a couple of weeks later by Secretary of State Antony Blinken's visit. And now Treasury Secretary Janet Yellen will spend four days in the Chinese capital as she meets with top Chinese officials.
Granted, these visits could be viewed as setting the stage for reciprocal visits by Chinese officials to Washington. However, the consistency of the trips to China has to be considered an acknowledgment by the White House that China is indeed an international power that deserves to be respected on the global stage.
Secretary Yellen's visit is not likely to carry any of the baggage that Secretary Blinken's visit did. She has repeatedly spoken seriously and sincerely about the flawed idea of America decoupling from China as a means of addressing the differences between the two countries. As one example, in a recent appearance before the House Financial Services Committee, she told lawmakers that "I think we gain and China gains from trade and investment that is as open as possible, and it would be disastrous for us to attempt to decouple from China." She also acknowledged that China had "succeeded in lifting hundreds of millions of people out of poverty, and I think that's something that we should applaud."
U.S. Treasury Secretary Janet Yellen testifies before the House Financial Services Committee during a hearing regarding the state of the international financial system at the Capitol in Washington D.C., the U.S., June 13, 2023. /CFP
In short, Yellen wants lawmakers, who are always far too quick to criticize China through feeble efforts to score domestic political points, to understand that the U.S. needs China if it is to maintain its economic strength. While Brexit – the United Kingdom's decision to leave the European Union – might not be a perfect comparison, it is worth noting that the UK has struggled since departing from the EU. The BBC examined what has happened to the British economy over the past three years and concluded that trade "has become less important in contributing to our prosperity. 'Global Britain' has become less open. It is lagging behind." There is every reason to believe that the U.S. would face even more significant problems if it decouples from China.
Yellen's office set the anticipated professional tone of her trip a few days ago, announcing that she remains determined "to responsibly manage our relationship, communicate directly about areas of concern and work together to address global challenges." The department's statement added the U.S. seeks "a healthy economic relationship with China that fosters mutually beneficial growth and innovation, and expands economic opportunity for American workers and businesses." In other words, she and her office want nothing to do with decoupling.
Yellen is also expected to meet with leaders of multinational corporations in Beijing, although neither she nor other members of President Joe Biden's administration are saying who is on her agenda. Those corporate executives, too, have been making the point that the U.S. would damage itself, China and the global economy by decoupling from China. The chairman of JP Morgan Chase, Jamie Dimon, made that point clear in a recent interview with Bloomberg, saying, the legitimate differences between Washington and Beijing cannot be fixed "if you are just sitting across the Pacific yelling at each other, so I'm hoping we have real engagement."
Business leaders might raise the issue of tariffs, which were put in place when Donald Trump was president and which Biden has stubbornly refused to get rid of. The Council on Foreign Relations, a think tank constantly critical of China, has noted that an analysis of the effects of the tariffs concluded: "U.S. consumers largely bore the brunt of the tariffs, paying a total of $48 billion – with half of this figure paid by U.S. firms that rely on intermediate inputs from China." Another think tank, the Cato Institute, added that the tariffs "harmed American businesses, workers and the U.S. economy, costing the poorest the most." President Biden would be wise to remember that he is up for re-election next year, and he and his party's overtures to America's least fortunate will ring hollow with destructive tariffs still in place.
Anyone expecting a dramatic moment during Yellen's visit will be disappointed. One analyst made an important point about Yellen's trip, telling the Guardian that "I think the U.S. government is clearly trying to put some floor under the deterioration of the economic relationship." Many of the cracks in that floor have been caused by bad policies (tariffs) and ridiculous political posturing (decoupling) emanating from the United States. Serious issues must be addressed with legitimate ideas and reasonable suggestions for improvements. Those are not evident in Washington these days.
As of now, Secretary Yellen is showing she is the adult in the room. We can hope more people in Washington listen to what she is saying, especially if the recent visits by U.S. officials to China are indeed followed by similar trips from Chinese officials to Washington.
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