US Treasury’s Yellen to Meet Chinese Vice Premier Ahead of APEC Summit

By David Lawder

WASHINGTON – U.S. Treasury Secretary Janet Yellen is scheduled to meet with Chinese Vice Premier He Lifeng in San Francisco this week in an effort to strengthen the economic dialogue between the two largest economies in the world. This meeting comes ahead of a summit of Pacific Rim leaders hosted by the U.S.

The Treasury Department announced on Monday that the meetings, taking place on November 9-10, will also include discussions from the new economic and financial forums recently established by the U.S. Treasury and China’s finance ministry and central bank.

Yellen’s first encounter with He, who is the new economic leader for China, took place in July during her visit to Beijing. This was aimed at addressing the worsening U.S.-China relations amid increasing American restrictions on sensitive technologies.

The San Francisco meetings are set to occur just before the Biden administration hosts ministers and leaders from Asia-Pacific Economic Cooperation countries from November 11-17. During this gathering, President Joe Biden is expected to meet with Chinese President Xi Jinping.

A senior official from the U.S. Treasury indicated that the meetings between Yellen and He will not necessarily produce specific outcomes, framing it not as a "policy trade" situation but rather a foundation for ongoing dialogue. Yellen aims to understand better the operation of the new communication channels between the U.S. and China to ensure they remain stable and resilient.

Additionally, Yellen wishes to engage in conversations regarding the measures Chinese officials may be considering to bolster their economy and what factors could influence their policy decisions.

Trade Concerns

As concerns rise over the possibility of China increasing its manufacturing exports to the U.S. and other global markets, Yellen is expected to caution He against the extensive use of industrial subsidies for state-owned enterprises and practices that could restrict U.S. companies in Chinese markets.

In an opinion piece, Yellen expressed her serious concerns about Beijing’s economic practices, highlighting the extensive use of non-market instruments, obstacles to market access, and coercive actions against U.S. businesses in China. She emphasized that the U.S. seeks "healthy competition" with China without aiming to induce a chaotic withdrawal of private sector investments from China.

A brief statement from a spokesperson for the Chinese foreign ministry confirmed that He will be visiting the U.S. from November 8-12, at Yellen’s invitation, identifying him as the primary representative for China-U.S. economic and trade matters, though no specific details about their meetings were disclosed.

Engagement Approach

The ongoing communications have facilitated a clearer explanation of U.S. national security policies to Beijing, including export controls on sensitive technologies and restrictions on U.S. investments in China. However, Yellen clarified that her engagement with He is not intended to recreate the broader U.S.-China Strategic and Economic Dialogue from the Obama administration, which faced criticism for its lack of effectiveness.

Instead, Yellen is focusing on specific, high-priority economic issues where tangible progress can be achieved. These include cooperation on global challenges such as climate change, expediting debt relief for poorer nations, and reducing illicit financial flows that fund terrorism and the illegal drug trade.