Yellen says US-China relationship on ‘more stable footing’ but more can be done to improve ties

BEIJING (AP) — U.S. Treasury Secretary Janet Yellen met Sunday with Chinese Premier Li Qiang in Beijing and sent a message of mutual cooperation despite the nations’ differences.

Yellen came to China with trade practices that put American companies and workers at an unfair competitive disadvantage at the top of her mind.

Chinese government subsidies and other policy support have encouraged solar panel and EV makers in China to invest in factories, building far more production capacity than the domestic market can absorb.

The massive scale of production has driven down costs and ignited price wars for green technologies. While that is a boon for consumers and efforts to reduce global dependence on fossil fuels, Western governments fear that that capacity will flood their markets with low-priced exports, threatening American and European jobs.

In the ornate Fujian room of the Great Hall of the People building just west of Tiananmen Square, she told Li: “While we have more to do, I believe that, over the past year, we have put our bilateral relationship on more stable footing.”

“This has not meant ignoring our differences or avoiding tough conversations,” she said. “It has meant understanding that we can only make progress if we directly and openly communicate with one another.”

Li said media interest in Yellen’s visit “shows the high expectation they have… and also the expectation and hope to grow” the U.S.-China relationship.

The meeting comes after the U.S. and China on Saturday agreed to hold “ intensive exchanges ” on more balanced economic growth, according to a U.S. statement issued after Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in the southern city of Guangzhou.

They also agreed to