Beijing –

U.S. Treasury Secretary Janet Yellen and her team are leaving China to return to Washington after trying to resolve the major issues between the two countries today. Here’s what she tried to achieve, what she accomplished, and what’s happening with the world’s two largest economies:

unfair trade practices

Yellen said she wanted to join the U.S.-China talks to address one of the Biden administration’s key complaints that Beijing’s economic model and trade practices undermine U.S. companies and workers by producing highly subsidized solar products, electric vehicles and lithium-ion batteries. be at an unfair competitive disadvantage. Lose money and dominate the global market.

Subsidies and other policy support from the Chinese government have encouraged China’s solar panel and electric vehicle manufacturers to invest in factories and build capacity far beyond what the domestic market can absorb. She calls it overcapacity.

Throughout the week-long meeting, she spoke about the risks posed by one country maintaining nearly all capacity in these industries, the threats posed to industries in other countries, and how a large and rapid increase in one country’s exports could have a significant impact on these industries. Global economy.

Yellen and Chinese Vice Premier He Lifeng ultimately agreed to have “in-depth exchanges” on more balanced economic growth, according to a U.S. statement issued after a lengthy two-day meeting in the southern city of Guangzhou. It is unclear when and where the talks will take place.

“This is not going to be solved in one afternoon or in a month, but I think they’ve heard that this is an important issue for us,” she said.

Money laundering and related crimes

After several rounds of meetings, the U.S. Treasury Department and the People’s Bank of China agreed to work together to stop money laundering in their respective financial systems.

Nearly all the precursor chemicals needed to make the deadly substance fentanyl enter the United States from China.U.S. says exchanging money laundering information related to fentanyl trafficking could help stem the flow of precursor chemicals into Mexico and the U.S.

“Treasury is committed to using all of our tools, including international cooperation, to confront this threat,” Yellen said in remarks announcing the group’s creation.

The new cooperation between the United States and China will form part of the two countries’ economic working group launched last September, with the first exchanges set to take place in the coming weeks.

Tik Tok

The U.S. effort to ban social media app TikTok, owned by Chinese parent company ByteDance, was first proposed by China during U.S.-China talks, a senior Treasury official told The Associated Press. The company has in the past promoted a data security restructuring plan called “Project Texas,” saying it was sufficient to guard against national security concerns.

However, U.S. lawmakers have moved to either ban the app or force the Chinese company to divest its interest in the company, which the White House has expressed support for. This week in China, it was clear there was little progress on the issue.

Yellen said at a news conference Monday that she supports the government’s efforts to address national security concerns related to sensitive personal data. “It’s a legitimate concern,” she said.

“Many U.S. social apps are not allowed to operate in China,” Yellen said. “We hope to find a way forward.”

financial stability

On the second day of Yellen’s visit to China, China and the United States announced close cooperation on issues related to financial stability and agreed to hold a series of exercises to simulate the collapse of large banks in both countries. of both countries.

Its purpose is to determine how to coordinate in the event of a bank failure to prevent catastrophic stress on the global financial system.

Yellen said several exercises have been conducted.

“I am pleased that we are about to communicate on the operational resilience of the financial sector and the financial stability implications of the insurance sector’s exposure to climate risks.

“Just like military leaders need a hotline in a crisis, U.S. and Chinese financial regulators must be able to communicate to prevent financial stress from turning into a crisis with outsized consequences for our citizens and the international community,” Yellen said.

what did she eat

Yellen has become something of a gourmet celebrity in China since eating hallucinogenic mushrooms in Beijing last July. This trip was no exception.

Senior Chinese officials have cited her fame ahead of key meetings – Premier Li Qiang noted in his opening remarks that Yellen’s visit “has indeed attracted widespread social attention” and media reported on her schedule and eating habits. Social media was abuzz with her latest updates in Guangzhou and Beijing.

This time in Beijing, Yellen ate at Lao Sichuan Ban, a popular Sichuan restaurant. She also had lunch with Beijing Mayor Yin Yong at the Beijing International Hotel. On Monday night, her last night in China, Yellen visited the American-co-founded Beijing Jing A Beer Co., where she ordered a Feiquan IPA, a beer brewed with American hops. .