U.S. Treasury Secretary Janet Yellen says she has a plan to thaw the chilly relations with China and make the world a bit better.
When China’s leader Xi Jinping met with U.S. President Joe Biden just outside San Francisco nearly a month ago, the summit was surrounded by tensions that gave uncomfortable vibes of the Cold War, according to reports.
Biden even once again called Xi a “dictator.”
It’s no secret that relations are quite frosty between the two superpowers, which are the world’s largest economy (USA) and the second-largest economy (China).
Yellen’s Plan for the USA and China Now
After a dinner organized by the Chinese Business Council in the USA, Janet Yellen says that the ties between the two countries will improve, CNBC reports.
It’s about “stabilizing” the atmosphere between China and the USA in a “responsible manner,” reasons the U.S. Treasury Secretary, who intends to travel to China for the second time in an attempt to charm the regime in Beijing.
Everyone is a winner from a good relationship between the USA and China, argues Yellen, pointing to a safer and more secure world instead of the opposite – an escalation of the already noticeably strained relationship.
No Secret That the Countries Deeply Disagree
Yellen is aware that the countries today are “strongly disagreeing” in many areas, there are also “risks of shocks,” as she puts it.
But she wants to learn more and try to understand the mechanisms that govern China’s economic policy, where local authorities struggle with debt and the real estate sector is in deep crisis alongside the threat of deflation in the economy.
It is important for U.S. policymakers, according to Janet Yellen, to gain insight into the Chinese economy, which has not taken off as expected but instead is characterized by a sluggish recovery after the COVID-19 shutdowns.
Want to Cooperate Against Money Laundering and Cryptocurrencies
China, which has had its outlook downgraded by the credit rating agency Moody’s, is at the same time an important partner in tackling climate change, which also threatens the financial systems, emphasizes Yellen, who also welcomes cooperation with China in the fight against money laundering, terrorist financing, and the risks of cryptocurrencies, writes CNBC.