TMTPost -- China’s leading economic official, premier Li Qiqiang, sent more signals on partnership, instead of rivalry, on the tone of Sino-US relationship.

Credit：Xinhua News Agency

“China sincerely hopes our two countries will be partners, not rivals, and we should respect each other, coexist peacefully, and cooperate for mutual benefits,” Li told U.S. Treasury Secretary Janet Yellen at the Great Hall of the People in Beijing on Sunday. Li noted the China-U.S. relationship is beginning to stabilize under the strategic guidance of the two heads of state, and called on U.S. to work with China to continue implementing the important consensus reached by the two heads of state, and translate the San Francisco vision into reality, the state media Xinhua News Agency reported.

Strengthening economic and trade cooperation is of great significance to each other's development and global economic growth since China and the United States, as the world's two largest economies, have deeply intertwined economic interests, Li noted. China’s No2 official said the two sides should strengthen communication to jointly find ways to manage and resolve differences, so as to make China-U.S. economic and trade cooperation stable, smooth and efficient, create more benefits for the enterprises and people of the two countries, and contribute to the world's economic development and improvement of people's livelihoods.

Li urged U.S. to abide by the basic norms of market economy including fair competition and open cooperation, refrain from turning economic and trade issues into political or security issues, and view the issue of production capacity objectively and dialectically from a market-oriented and global perspective. The premier said the development of China's new energy industry will make important contributions to the global green and low-carbon transition. China is willing to strengthen policy coordination with the United States on climate change and other issues to jointly address global challenges, he added.

Yellen, who is regarded a China dove in the Biden administration, highlighted progress that has made in improving the U.S.-China relationship and echoed cooperation is required for two major countries. “While we have more to do, I believe that over the past year we’ve put our bilateral relationship on more stable footing, this has not meant ignoring our differences or avoiding tough conversations. It has meant understanding hat we can only make progress if we directly and openly communicate with one another,” Yellen said. “As the world’s two largest economies, we have a duty to our own countries and to the world to responsibly manage our complex relationship and to cooperate and show leadership on addressing pressing global challenges.”  

Yellen said the United States appreciates the progress made in U.S.-China economic dialogue and cooperation, does not seek "decoupling" from China, and stands ready to work with China to implement the important consensus reached by the two presidents in San Francisco, communicate candidly, avoid misunderstandings, deepen exchanges and cooperation, properly manage differences, jointly cope with pressing global challenges and promote the steady development of bilateral relations.

Yellen is the first U.S. cabinet member to travel to China since Chinese President Xi Jinping and the U.S. President Joseph Biden had their first phone call since last November. Both Beijing and Washington said the two leaders had a candid and constructive discussion on a range of issues including bilateral relationship. Xi stressed that the issue of strategic perception is always fundamental to the China-U.S. relationship, and the two countries should not cut off their ties or turn their back on each other, still less slide into conflict or confrontation. Biden reiterated the U.S. does not seek conflict with China and said U.S. does not want to curtail China's development, and does not seek "decoupling" from China. .

Yellen, at start of her six-day trip to China, reiterated the stance.  “With a large and growing middle-class, China represents a huge market for American manufactureres and othe firms. President Biden and I firmly reject the idea that the United States should decouple from China. The full economic separation is neither practicle nor desirable,” the Secretary told representatives of the American business community at an event hosted by American Chamber of Commerce in the People's Republic of China (AmCham China) on Friday.

In her two days of meetings in Guangzhou with Chinese Vice Premier He Lifeng, Yellen raised concerned about the impact of Chinese industrial overcapacity in certain sectors as a result of government support, and the impact it could have on the American economy. China wants to “create a favorable environment for businesses and will deliver benefits to our two countries and our two peoples,” He said ahead of the meeting.

Xinhua reported He and Yellen agreed to discuss issues such as balanced growth of the United States, China and the global economy, financial stability, sustainable finance, and cooperation in countering money-laundering under the China-U.S. economic and financial working group. The Chinese side expressed grave concern over U.S. economic and trade measures restricting China and responded fully to the issue of production capacity, Xinhua reported, adding that both sides agreed to continue to maintain communication..

Yellen announced the two sides have agreed to launch two significant new initiatives following meetings with He. According to the U.S. Department of the Treasury (USDT), the first initiative is that the U.S. and China will hold intensive exchanges on balanced growth in the domestic and global economies. These exchanges will facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity. Yellen said she intends to use the opportunity to advocate for a level playing field for American workers and firms. The Second inistiative is that the U.S. and China will start Joint Treasury-PBOC Cooperation and Exchange on Anti-Money Laundering to expand cooperation against illicit finance and financial crime. Yellen believes the  new effort will enable the U.S. and China to share best practices and provide updates on the actions we are each taking to close loopholes in our respective financial systems.