US Treasury Secretary Janet Yellen plans another China trip for 2024

US Treasury Secretary Janet Yellen will make another trip to China next year where she will keep pressing Beijing for clarity on its “non-market practices”.

Yellen is to outline her 2024 US-China economic agenda at the 50th anniversary gala of the US-China Business Council on Thursday evening, in the latest effort in the US push to “responsibly manage” the relationship.

At the top of her agenda is facilitating exchanges between US and Chinese financial regulators, according to a preview of her speech shared by the Treasury.

“It is often well-understood that military leaders need to have quick and reliable means of communication to keep a crisis from spiralling out of control,” a transcript of the speech says.

“For economic policymakers responding to financial stress, it is also critical to know the counterpart on the other end of the line and be able to make a quick call.”

Efforts, Yellen is to note, are already underway to exchange information about modeling “climate stress” scenarios and about responding to the failure of a global systemically important bank in the US or China.

The financial and economic working groups that the two sides launched after her first trip to Beijing as treasury secretary in July will continue to meet regularly, according to the transcript.

A main focus of her speech will be the importance of greater transparency from China – which, Yellen will stress, is key to global financial stability.

“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,” the transcript says.

Yellen will signal that she won’t hold back raising concerns on issues the two sides disagree on, noting that discussing “difficult areas” is to be a “significant” part of her trip to China.

These areas include Beijing’s “national security actions” and other behaviours that can disadvantage the private sector.

“We will reinforce – alongside our partners and allies – that for a healthy economic relationship to be sustainable, it is essential that there is a level playing field for our firms and workers,” the transcript says.

She will also reiterate the US commitment to “clear communication” concerning actions it takes that will affect China, including its outbound investment and sanctions regimes.

Earlier this year, US President Joe Biden issued executive orders that further restrict China’s access to advanced technology.

US President Joe Biden and Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation Leaders’ week in Northern California on November 15. Photo: AFP/Getty Images/TNS

In front of the gathering of top business leaders, Yellen also plans to outline opportunities of cooperation on anti-money-laundering, countering terrorist financing, and other global challenges like developing principles to achieve net-zero emissions.

She will highlight the counter-narcotics commitments Biden and Chinese President Xi Jinping made at the Asia-Pacific Economic Cooperation summit in Northern California last month.

“Continuing to stabilise our relationship to prevent escalation won’t make news. But our economies, our people … will be safer and more secure,” the transcript says.