US, China have stabilised relations over past year, says Treasury Secretary Yellen

The US and China have put their bilateral relationship on a “more stable footing” over the past year, which has not meant ignoring differences or avoiding tough conversations, US Treasury Secretary Janet Yellen told Chinese Premier Li Qiang on Sunday.

Both countries have to responsibly manage the complex relationship, and to cooperate and show leadership in addressing urgent global challenges, Yellen told Li in Beijing following her visit to the southern Chinese city of Guangzhou.

“We can only make progress if we directly and openly communicate with one another,” Yellen said, according to a transcript of her remarks.

Earlier, Yellen and Chinese Vice-Premier He Lifeng agreed to set in motion formal talks aimed at addressing what the US and other countries see as China’s growing industrial overcapacity.

Since her arrival in Guangzhou on Thursday evening, Yellen has offered mostly criticism of the way Chinese leaders have managed their economy. She repeatedly called out Beijing for mistreating US and other foreign companies operating in China and for distorting global markets by subsidising overproduction in certain sectors.

China “sincerely” hoped the two countries could become partners, Li said. DM