Biden-Jinping clash over phone and US Treasury Secretary Janet reaches China, know the reason

US Treasury Secretary Janet Yellen is scheduled to reach China today after Jinping and Biden talked for about two hours about Taiwan, Ukraine, Artificial Intelligence and climate change. She will travel to the southern city of Guangzhou and the capital Beijing. Observers believe trade is a key factor in efforts to reset US-China relations, helping to maintain fairly stable relations during the US election year. According to the US Treasury, his itinerary in Guangzhou and Beijing will include meetings with economists, US businesses, Guangdong Governor Wang Weizhong and Beijing Mayor Yin Yong.

The world’s two largest economies have resumed regular talks and US Treasury Secretary Janet Yellen visited Beijing last year. But the countries still bicker over economic issues as they fight for superiority in advanced technologies and work to secure vital supply chains. As soon as Yellen arrived in China on Thursday, what issues did she face? Citing green energy sectors such as solar and electric vehicles, Washington is wary that cheap Chinese exports could flood global markets. The United States is working to build its supply chains in these areas.

The Atlantic Council said Chinese banks have provided large new lending facilities to the country’s manufacturing sectors, leading to about $700 billion (Rs 58.40 lakh crore) of new credit in the third quarter of 2023, compared with a year earlier. It said this was often at below-market interest rates. With new factories making products ranging from EVs to batteries, there are fears that Beijing could become dependent on the global market to absorb production that domestic demand cannot absorb.