US Treasury Secretary Janet Yellen and Chinese Premier Li Qiang joined a panel at a summit in Paris, signalling a possible improvement in relations between the two countries. This is Yellen's first appearance with a senior Chinese official in months, amid growing US efforts to revive engagement with Beijing.
The discussion focused on global challenges, including debt and climate change, with Yellen stressing the importance of cooperation between the world's two largest economies. "As the world's two largest economies, we also have a responsibility to work together on global issues. It is something the world expects of us," she stated.
This comes after Secretary of State Antony Blinken visited China last week, becoming the most senior US official to visit the country in five years. The US is looking to ease tensions that have led to fears of open conflict between the two powers.
However, US President Joe Biden's recent reference to Chinese President Xi Jinping as a "dictator" has created a setback in the efforts to improve relations. China accused Biden of making a "public political provocation." Yellen had expressed her desire to visit Beijing but tensions over issues such as trade, Taiwan, conflicting claims regarding the South China Sea, and a Chinese balloon flight over the US have left her plans in limbo.
Yellen has emphasized that while the Biden administration is willing to pay economic costs to protect US national security interests from China's threats, cooperation between the two powers is crucial to tackle global challenges, including climate change and macroeconomic stability. The panel included representatives from other countries and focused on the role of international cooperation in addressing the challenges facing the global economy.