In a speech to celebrate the 50th anniversary of the US-China Business Council, US Treasury Secretary Janet Yellen outlined the Biden administration's approach to managing relations with China during the 2024 presidential election year. Yellen emphasized the importance of preventing misunderstandings that could exacerbate tensions and highlighted the need for clear communication to maintain stability.

Yellen stated that stabilizing the US-China relationship to prevent escalation may not make headlines, but it is crucial for the safety and security of both economies and people around the world. As part of the administration's commitment to clear communication, Yellen also announced she would be making a second trip to China in 2024.

The Treasury Secretary emphasized the importance of understanding US intentions in areas such as sanctions, outbound investment, industrial subsidies, and national security. However, she did not directly address the issue of tariffs imposed by former President Donald Trump on Chinese goods. Yellen reiterated that the Biden administration does not seek to economically decouple from China.

While Yellen did not mention the possibility of Congress passing legislation to revoke "permanent normal trade relations" with China, which could potentially disrupt the administration's efforts to stabilize relations, she did mention the administration's commitment to press for clarity on China's economic policies and policymaking.

The Biden administration aims to address areas of disagreement with China, such as the potential global spillover effects of China's industrial policies and actions that may disadvantage the private sector. Yellen also stressed the need for greater transparency on China's non-market practices and foreign exchange practices.

The remarks by Secretary Yellen come as the Biden administration continues its review of the tariffs imposed by the previous administration on over $300 billion worth of Chinese goods, to determine whether any changes should be made. The administration's approach aims to navigate the complexities of the US-China relationship while maintaining stability and promoting open communication.

As the 2024 presidential election year approaches, the Biden administration's focus on managing US-China relations will play a crucial role in shaping the future trajectory of the economic and geopolitical landscape. The efforts to establish clear communication and address areas of disagreement will be closely watched by stakeholders both domestically and globally.