Treasury Secretary Yellen outlines plan to improve U.S.-China ties

U.S. Treasury Secretary Janet Yellen underscored her priorities aimed at stabilizing frigid ties between the United States and China late Thursday.

Yellen, in prepared remarks for a dinner hosted by the U.S.-China Business Council, said “continuing to stabilize our relationship to prevent escalation won’t make news. But our economies, our people — and, again, also economies and people around the world — will be safer and more secure.”

“This is what it means for the U.S. and China to build and responsibly manage our relationship,” she said, adding that she has plans to visit China for a second time as Treasury Secretary. She first visited China as Treasury Secretary in July.

Yellen acknowledged that the two countries “strongly disagree” on many areas and there are “risks of shocks” that could impact both.

Relations between the world’s two largest economies have been watched closely for any signs of improvements since China’s President Xi Jinping and U.S. President Joe Biden met last month on the sidelines of the Asia Pacific Economic Cooperation leaders’ meeting in San Francisco.  

Both parties agreed at that time to keep a lid on tensions between the world’s top two economies next year, as they shifted focus to domestic challenges.

Yellen on Thursday highlighted the United States’ plans to keep pressing Beijing on its economic policies and policymaking, noting that China is now nearly 20% of the global economy and its economic decisions have far-reaching consequences.

“Understanding China’s plans, especially how China intends to respond to challenges with local government debt and the real estate market or how it might react if unexpected weaknesses in its economy should arise, is crucial for those of us charged with policymaking in the…