Yellen's China visit should resurrect Beijing-Washington comprehensive economic ties

Editor's note: Moulik Jahan, a special commentator for CGTN, is an independent researcher, freelance columnist and strategic and security affairs analyst. The article reflects the author's opinions and not necessarily the views of CGTN. 

The U.S. Treasury Secretary Janet Yellen's ongoing visit to China from April 4 to 9 is important for highlighting the stable economic relations between the world's two largest economies, particularly in light of the U.S. crackdown on Chinese hi-tech sectors, most notably on semiconductors.

As the U.S. has continued its "decoupling" and "de-risking" strategy in recent months, there have been tensions with China. These actions include the imposition of trade barriers on Chinese companies through tariffs and non-tariff barriers, the unfair and improper targeting of Chinese companies in the U.S., and Washington's unjustified sanctions on the Chinese business entities.

Yellen's visit to China is her second trip as the U.S. Treasury Secretary and marks the first high-level visit between Washington and Beijing this year. The visit highlights the cooperative efforts of the two nations to use high-level business diplomacy to settle bilateral issues and disagreements regarding trade disputes. It could pave the way for the continuation of positive Beijing-Washington economic relations for the stability of the global supply chains.

Washington's accusations of China's "industrial overcapacity" in sophisticated manufacturing and its alleged unfair trade practices with U.S. corporations are rooted in their inflammatory rhetoric and deeply held misconceptions about the Chinese market. China's market economy may be seen by the U.S. and the EU as being supported by artificial advantages and subsidies, decreasing U.S. and EU market share and even eliminating jobs. In reality, China has never engaged in unfair trade practices or corporate favoritism. China is a leader in EVs, semiconductors, chips, solar panels, batteries, and electric cars due to its innovation, sustainability, and increasing demand from across the world. Chinese products with superior quality are highly favored in the global market and meet the demands of overseas customers.

Anyone who observes China's economic prowess would undoubtedly conclude that the country has a market economy that adheres to trade liberalization, WTO rules, and the global trading system. China never engages in unethical commercial tactics against foreign enterprises or trade protectionism for the sake of block politics. However, the U.S. implemented Section 301 tariffs on Chinese imports, the CHIPS and Science Act, and other laws, which were viewed as a breach of U.S. obligations under the WTO rules.

Being the second biggest economy in the world, China welcomes international businesses and investors to take advantage of its sizable market and maintain the stability of the global supply chains. Take a look at the just concluded major business conferences, such the Boao Forum for Asia 2024, the Invest in China Summit, and the China Development Forum 2024. On March 27, Chinese President Xi Jinping met with representatives of the U.S. business, strategic and academic communities at the Great Hall of the People in Beijing. We saw how Western corporations expressed interest in and support for China's just and regulation-based international commercial market system through a series of events. Therefore, claims that China engages in unfair trade practices against U.S. businesses is completely untrue.

Conversely, the U.S. is the one suppressing Chinese businesses. Consequently, China's exports to the U.S. dropped by 13.1 percent to $500.03 billion in 2023, while its imports from the U.S. declined by 6.8 percent to $164.16 billion. If economic cooperation keeps declining, how will we guarantee global growth? Containing China's high-tech development doesn't bode well for global economic growth. The U.S. should engage in cooperation instead of imposing trade barriers. It is crucial to ensure stable and healthy Washington-China ties for smooth global growth.

At this crucial juncture in the bilateral economic relations between China and the U.S., Yellen's visit should aim to reach a consensus for stabilizing the relationship, steer it toward a more cooperative and harmonious orbit. The U.S. now need to stand shoulder to shoulder with the demands of the global economy, and provide a glimmer of hope for worldwide companies by managing differences and toning down the political discourse on China. Ultimately, these efforts will recalibrate and cultivate a mutually beneficial economic relationship.

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