Secretary of State Antony Blinken’s Anticipated Second Visit to China This Year

Janet Yellen, the Treasury Secretary, stated that she would emphasize the advantages of strong economic ties for both China and the US.

TFD – Join us at TheFoxDaily as we delve into the anticipated second visit of Secretary of State Antony Blinken to China this year. Explore the significance of fostering strong economic ties and the implications for the US-China relationship.

Beijing: On the first full day of her official meetings in China, Treasury Secretary Janet Yellen discussed concerns about overcapacity and urged the pursuit of market-oriented reforms.

Yellen landed late on Thursday in Guangzhou, in southern China. She will go to Beijing on Saturday and stay there until Tuesday. She is visiting China for the second time as Treasury Secretary.

Yellen held a meeting with Wang Weizhong, the governor of Guangdong province, whose capital is Guangzhou, before to her scheduled meeting with Vice Premier He Lifeng on Friday.

In prepared remarks for her meeting with Wang, Yellen stated, “I will stress throughout my engagements with my counterparts that a healthy economic relationship can bring significant benefits for both our economies.”

“I’ve also emphasized that open and direct communication on areas where we disagree is essential to building a healthy economic relationship for American workers and firms,” Yellen stated. “This includes the concern raised by the United States and other nations about the potential global spillovers resulting from China’s industrial overcapacity.”

Yellen met on Friday with corporate representatives from Japan, Europe, and the United States.

Speaking beforehand, Yellen stated, “Overcapacity isn’t a new problem, but it has intensified, and we’re seeing emerging risks in new sectors” at a Guangzhou event organized by the American Chamber of Commerce in China.

She stated, “Overcapacity can affect China’s productivity and growth and poses challenges for Chinese firms and industries.” “I think it’s in China’s best interest to address overcapacity and, more broadly, to consider market-based reforms.

According to a report published in late March by analysts at the American consulting firm Rhodium Group, the Chinese government’s recent support for manufacturing has led to a build-up of production capacity that surpasses domestic demand.

According to the research, “many Chinese enterprises are still turning to foreign markets to offset lower prices, margins, or even losses on the China market.”

Beijing has acknowledged the issue and requested additional guidelines on investment to avoid overcapacity, according to Rhodium Group. “But the solutions that are ultimately chosen will probably revolve around retiring outdated capacity and allowing the least competitive businesses to close their doors while still promoting capacity expansion, innovation, and exports in other sectors,” the research stated.

China’s potential for growth

Shenzhen, a significant hub for tech companies and startups, is located in Guangdong, one of the provinces that has contributed most to China’s economic growth. According to Wind Information, Guangdong is by far the most valuable province in China in terms of exports.

In prepared remarks for her meeting with Wang, Yellen stated, “[Guangzhou] was at the forefront of market-oriented reforms that advanced China’s economic development and openness in recent decades.

“And I know this city still holds a great deal of significance today, particularly as a major center for manufacturing and technology,” she remarked.

After the US, China has the second-largest economy in the world. Following a crackdown on property developers’ excessive reliance on debt for growth and suspected monopolistic actions by online platform businesses, the Asian nation’s growth has halted. Apprehension regarding Beijing’s initiatives to enhance general development and consumption has affected investor and company sentiment.

Nicholas R. Lardy, senior fellow at the Peterson Institute for International Economics, wrote in Foreign Affairs on Tuesday that China “will likely continue to contribute about a third of the world’s economic growth while increasing its economic footprint, particularly in Asia.”

He stated that American policymakers would be prone to overestimate their own capacity to maintain the strengthening of their security and economic connections with Asian allies if they fail to see this.

Tensions between the US and China

Yellen’s visit to China coincides with efforts by both sides to improve communication in an increasingly strained relationship.

This week marked the first phone conversation between Chinese President Xi Jinping and US President Joe Biden since their November in-person meeting in California.

According to a ministry statement, Wang Shouwen, vice minister of commerce and head of international trade negotiations, traveled to the United States from Tuesday to Friday for the inaugural vice-ministerial meeting of a bilateral working group on commerce and trade.

Following their visit to China last year, Yellen and Commerce Secretary Gina Raimondo announced plans for these working groups to meet regularly.

After an extended visit to China in June 2023, Secretary of State Antony Blinken is anticipated to travel again this year.