U.S. Treasury Secretary Janet Yellen on Thursday welcomed China's top economic policy chief He Lifeng for two days of talks in San Francisco, about a week before an expected one-on-one meeting between the presidents of the two countries.
"We seek a healthy economic relationship with China that benefits both countries over time," Yellen told He, Chinese President Xi Jinping's top economic adviser, as they began discussions in San Francisco.
While reiterating that the United States "has no desire to decouple from China" as a full separation of the two economies would be "disastrous for both our countries and for the world," she suggested Washington stands ready to do what is necessary to protect its national security interests.
Following a flurry of exchanges at senior levels in recent weeks, Yellen's discussions with the Chinese vice premier are largely seen as part of the two countries' final preparations for the first in-person meeting in a year between U.S. President Joe Biden and Xi.
A senior U.S. official told Kyodo News and a couple of other media outlets earlier this week that Biden plans to meet bilaterally with Xi next Wednesday in San Francisco.
Biden is scheduled to travel to the U.S. West Coast city on Tuesday, a day before the opening of this year's summit of the Asia-Pacific Economic Cooperation forum, involving 21 Pacific Rim economies such as Australia, Japan, Peru, South Korea, Taiwan and Thailand.
Although the Biden administration has no intention to step away from its strategic competition with China, the U.S. president has repeatedly said he recognizes the importance of communicating directly with Beijing to avoid misunderstandings and prevent unnecessary tensions amid their disputes, which range from Taiwan to trade restrictions.
A senior Treasury Department official said earlier this week that the United States was seeking to establish a "more common understanding about the principles that guide the bilateral economic relationship" through Yellen's discussions with He.
Nonetheless, the official said Yellen was also set to express "serious concerns" about China's "unfair" economic practices, such as industrial subsidies and market barriers, during the two-day meeting.
At the outset, Yellen expressed hope to discuss U.S.-China cooperation on global challenges, including climate change and debt distress in low-income countries, in addition to major bilateral issues.
"As the world's two largest economies, we have an obligation to lead on these and other issues, for the people in our countries and around the world," she said.
