U.S.-China Tensions Persist in Talks

Treasury Secretary Janet Yellen's visit to Beijing resulted in progress in rebuilding dialogue between the U.S. and China, as both sides expressed positivity and agreed to continue discussions. However, significant disagreements remain. Despite the recent meetings between the U.S. and China being a modest step towards rebuilding dialogue, true reconciliation seems far off, as both sides engage in discussions for different purposes, with a sense of fatalism prevailing in both capitals. Washington and Beijing have adopted policies likely to keep relations unstable in the long term. China wants to be the best in advanced technology and supply chains to protect its economy. In contrast, the US government wants to focus on clean energy and making semiconductors in the US instead of China. Yellen highlighted the importance of open and focused communication between the U.S. and China regarding national security actions to mitigate their broader economic consequences.