2023-07-06 12:41:00
Discussing economic issues between the two countries… Following Blincoln’s state affairs, ‘disking’ moves
Anti-espionage law in the US and high tariffs in China are likely to be brought up on the agenda
U.S. Treasury Secretary Janet Yellen, who is visiting China for four days, waves as she arrives at Beijing International Airport on the 6th. Archyde.com Yonhap News
U.S. Treasury Secretary Janet Yellen started her four-day visit to China on the 6th (local time). Following Secretary of State Tony Blincoln, the US’Economic Command Tower’ will visit China in three weeks and continue high-level conversations. However, there is a prospect that it will not be able to make a breakthrough in key issues where the positions of both sides are sharply opposed, such as semiconductor export control.
Secretary Yellen arrived at the Beijing airport in the followingnoon of the same day, greeted by US Ambassador to China Nicholas Burns and Chinese Finance Minister Yang Yingming. During his visit to China, he will meet with key figures in the Chinese economy, including Chinese Vice Premier Heifeng, Finance Minister Liu Kun, and State Council Premier Li Chang, to discuss economic issues between the two countries. Minister Yellen’s visit to China, which follows Minister Blincoln, has the meaning of resuming high-level dialogue between the US and China in the economic field. It is of interest whether the Joe Biden administration’s Chinese economic plan, which advocated “derisking (risk removal), not decoupling (decoupling),” will materialize.
The biggest pending issue is export control measures for advanced technologies such as semiconductors. China imposed sanctions on the US semiconductor company Micron in May, and announced export restrictions on semiconductor materials such as gallium and germanium on the 3rd, the same day that Minister Yellen’s plan to visit China was announced. It is a ‘reciprocal’ measure once morest the US export control of semiconductor equipment to China. There is also an interpretation that China’s intention to seize the initiative in negotiations with the United States during his visit to China was underlying.
The U.S. Department of Commerce said in a statement on the 5th that it “resolutely opposes” China’s restrictions on mineral exports, and that “the United States will work with allies and friends to address this issue and build core supply chain resiliency.” Archyde.com reported. It made it clear that it would not back down from the U.S.-led reorganization of the supply chain for high-tech industries such as semiconductors.
Accordingly, it is expected that the US and China will engage in a sharp battle over semiconductor export controls during Minister Yellen’s visit to China. The Biden administration issued an export control policy to China in the high-tech semiconductor field in October of last year, and is preparing additional measures to expand the scope of sanctions to low-end artificial intelligence (AI) semiconductors and cloud services. An executive order restricting U.S. investment in China’s high-tech industrial sector is also expected to be issued soon.
China’s position is that it will raise the US tariffs on China, which were imposed during the Donald Trump administration, as an agenda item. Minister Yellen has argued that tariff reduction or elimination is necessary, saying that high tariffs are a factor in worsening inflation. However, within the Biden administration, voices that the public tariffs should be maintained to protect American jobs and improve unfair trade practices in China are forming the mainstream, so no noticeable changes are expected.
A weakening yuan, enforcement of China’s anti-espionage law, and debt relief to developing countries such as Africa are also on the agenda for the United States. In particular, it is expected to convey concerns that the activities of US companies in China may be restricted due to China’s recently strengthened anti-espionage laws. “One clear area of concern is China’s new counterespionage law,” said a US Treasury official.
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