US Treasury Secretary Janet Yellen is set to visit Beijing this week, marking the second high-level visit by a US cabinet official to China this year as relations between the two largest economies remain strained. Yellen's visit aims to emphasize the importance of responsible management of the US-China relationship, direct communication to address concerns, and collaboration on global challenges. The trip comes shortly after US Secretary of State Antony Blinken's meeting with President Xi Jinping and Foreign Minister Qin Gang in June, signaling a potential improvement in bilateral ties.
Focus on Economic Relationship:
During her visit, Yellen will engage in discussions about the economic relationship between the US and China. A senior Treasury official stated that Yellen will meet with senior Chinese officials and representatives from leading US companies, although specific details were not provided. The US emphasizes that actions related to national security and human rights are not aimed at gaining an economic advantage over China. Instead, Washington seeks to establish healthy ties, avoid decoupling the economies, and collaborate on urgent global issues like climate change and debt distress.

Long-Term Communication Channels:
While significant breakthroughs are not expected from this initial trip, the US intends to build long-term channels of communication with China. Edward Alden, a senior fellow at the Council on Foreign Relations, believes that the US government is striving to stabilize the deteriorating economic relationship. Yellen's visit could signal the resumption of steady engagement at lower levels, reflecting a shift in the US strategy from ambiguous support for decoupling to a focus on derisking and maintaining a robust economic relationship.
Expectations and Potential Challenges:
Observers caution against expecting quick resolutions to tensions between the US and China. The Biden administration is reportedly considering restrictions on certain outbound investments involving sensitive technology that has national security implications, a move that has irked Chinese officials. Other potential sticking points include recent amendments to China's anti-espionage law, which expanded the definition of spying and prohibited the transfer of information related to national security. The US Treasury official affirmed that Washington intends to communicate its concerns about the law during the visit.

Janet Yellen's visit to Beijing reflects the US government's efforts to stabilize the economic relationship between the US and China. The trip aims to establish direct communication, address concerns, and foster cooperation on pressing global challenges. While both sides express a desire for healthy ties and economic cooperation, significant breakthroughs are not expected during this initial visit. However, the visit lays the foundation for long-term channels of communication, potentially leading to a more stable relationship between the world's top two economies.