Yellen’s visit to China is ‘crucial’ to U.S.-China engagement, professor says

'Damage control' is key in U.S. Janet Yellen's visit to China, professor says

U.S. Treasury Secretary Janet Yellen’s visit to China is “crucial” to ensuring that both countries continue talking to each other, said Eswar Prasad, an economics professor at Cornell University. 

“The crucial element, which is embodied in Janet Yellen’s visit, is that the two sides keep talking on technical levels, but also at the very senior policy levels,” Prasad told CNBC’s “Squawk Box Asia” on Friday. 

Tensions between the two countries have shot up in recent years, since the U.S.-China trade war started in 2018 during the Trump-era. Today, geopolitical tensions continue amid accusations over China’s purported spy balloon in U.S. airspace, as well as their battle for tech supremacy.

Yellen landed in Beijing Thursday on a four-day trip.

She is due to meet Premier Li Qiang on Friday afternoon, following earlier meetings with former Vice Premier Liu He and ex-central bank governor Yi Gang, the Treasury Department said.

Her visit comes weeks after Secretary of State Antony Blinken’s visit to Beijing — the first high-level meeting between the two countries after months of tensions.

US Treasury Secretary Janet Yellen arrives at Beijing Capital International Airport in Beijing on July 6, 2023.

Mark Schiefelbein | Afp | Getty Images

“Damage control is really the key,” Prasad told CNBC, adding that Chinese officials can deal with anti-China rhetoric, as long as they do not translate into hostile actions that could keep China from its economic development.

“Officials in China are very attuned to the election cycle in the U.S. and they recognize that with November 2024 already looming, there is a prospect of anti-China rhetoric getting even hotter in Washington,” he said.

“I think the hope is that they can ward off any further actions that they perceive as being hostile towards China.”

U.S. investors are going to be 'really, really cautious' about China, says strategist

The Biden administration’s attitude toward China has been “a little bit less confrontational” this year, said Andy Rothman, investment strategist at Matthews Asia, who pointed out there could be better cooperation, engagement and trust going forward.

“U.S.-China relations aren’t going to get better … But I think the risks of an accident spiraling out of control into a crisis have gone down a lot over the last couple of months,” Rothman told CNBC on Friday.

Impact on China’s economy

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Chronicles Live is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – chronicleslive.com. The content will be deleted within 24 hours.

Leave a Comment