Yellen seeks stability in first meeting with China

Yellen seeks stability in first meeting with China,  On Wednesday, US Treasury Secretary Janet Yellen met in person for the first time with a senior Chinese official in an effort to normalize relations between the two largest economies in the world. At the Group of 20 summit in Bali, where two days earlier US President Joe Biden and his Chinese counterpart Xi Jinping met for three hours in an effort to defuse heightened tensions, Yellen met Yi Gang, governor of the central People’s Bank of China.

Yellen seeks stability in first meeting with China

According to the Treasury Department, Yellen and Yi “discussed global macroeconomic and financial developments, including the difficulties posed by high and volatile energy and commodity prices, and exchanged views on the macroeconomic outlook in the United States and China.” Prior to the meetings, Yellen said she would explain to Yi the concerns that have been raised in China, such as the Biden administration’s efforts to limit the export of sensitive technology.

She told the newspaper that although acknowledging that we have a variety of worries, her main goal will be “stabilizing the relationship and attempting to get it on a healthier basis.” Xi urged wealthy nations to “avoid the harmful spillover effects” of their monetary policies in a speech at the summit on Tuesday.

Although he did not specifically mention the US, the US Federal Reserve has moved quickly to raise interest rates in reaction to high inflation, which has caused the dollar to strengthen and placed pressure on countries that depend on exports.