US-China talks end up with no solution to export control

U.S. Treasury Secretary Janet Yellen said on Sunday that China is “big enough for both our countries to thrive,” adding that the two governments will engage in dialogue more frequently and regularly. They agreed to hold regular meetings on economic matters amid the growing concern that they have driven the world into the New Cold War. Their discussion did not bring them any tangible solution to focal issues sensitive to each of them – such as Washington’s regulation on semiconductor exports and Beijing’s export control of rare metals.

Secretary Yellen said in a press conference held at the U.S. Embassy in Beijing while wrapping up her four-day stay that decoupling will only invite disaster for both countries and destabilize the rest of the world,” adding that it is “virtually impossible to undertake.” After holding back-to-back discussions with Chinese Premier Li Keqiang and Vice Premier He Lifeng, she assessed that around 10 hours of talks over two days helped make the two countries closer and solidify the foundation for their relations.

However, both sides failed to agree on semiconductors and other economic matters. Secretary Yellen stated that Washington and Beijing showed a significant difference, adding, “No one visit will solve our challenges overnight.” She expressed concerns about China's anti-espionage act and economic retaliation and put pressure on the other side to restructure debt owed by developing countries. By contrast, Chinese representatives reportedly called on Washington to lift high tariffs on Chinese goods and lessen its regulation on semiconductor exports.

Chinese news media outlets wrote that the two nations had in-depth discussions during the first high-level talks on economic matters since the Biden administration was inaugurated. Regarding U.S.-led regulations, Vice Premier He stated that applying national security to too broad a scope will do no good to the economy and trade, according to China's state-owned Xinhua.


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