China, US expected to touch hard bone economic issues during Janet Yellen’s visit, with yuan and interest rates on the cards
- US Treasury Secretary Janet Yellen will begin a four-day visit to China on Thursday and is set to meet senior officials to ‘work together to address global challenges’
- Bilateral talks have resumed recently, and Yellen’s visit is expected to see China raise concerns over the yuan’s exchange rate and US interest rates increases
China and the United States are likely to discuss the Federal Reserve’s interest rate increases and the yuan’s weakness, among other bilateral and global issues, during this week’s long-awaited visit to Beijing by Treasury Secretary Janet Yellen, and analysts said it could serve to circumvent political wrangling between Washington and Beijing.
It is hoped that the four-day visit, which will start on Thursday, will also lead to further discussions over thorny trade issues, that include tech restrictions and tariffs on Chinese goods, they added.
The visit has raised hopes that China and the US can resume substantial dialogue to explore addressing economic headwinds to the global recovery, and even rediscover a path to prevent their problematic relationship from further derailing.
Both sides will find ways to overcome some political obstacles, and practically promote financial cooperation between the two countries
As the monetary policies of the world’s two largest economies have diverged, China has seen significant capital outflows from foreign investors since last year, which has also put pressure on the yuan.