Treasury Secretary Janet Yellen arrives for a information convention on the U.S. Embassy in Beijing, Sunday, July 9, 2023.

Mark Schiefelbein/AP

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Mark Schiefelbein/AP

Treasury Secretary Janet Yellen arrives for a information convention on the U.S. Embassy in Beijing, Sunday, July 9, 2023.

Mark Schiefelbein/AP

BEIJING — Treasury Secretary Janet Yellen on Sunday mentioned she agreed Washington will hearken to Chinese complaints about security-related curbs on U.S. know-how exports and may “respond to unintended consequences” as she ended a go to to Beijing geared toward reviving strained relations.

Yellen defended “targeted measures” on commerce that China’s leaders complain are geared toward hurting its fledgling tech industries. She mentioned the Biden administration needs to “avoid unnecessary repercussions” however gave no indication of potential adjustments.

Relations between the 2 largest economies are at their lowest stage in many years attributable to disputes about know-how, safety and different irritants. A key Chinese grievance is limits on entry to processor chips and different U.S. know-how on safety grounds that threaten to hamper the ruling Communist Party’s growth of smartphones, synthetic intelligence and different industries.

“We will open up channels so that they can express concerns about our actions, and we can explain and possibly in some situations respond to unintended consequences of our actions,” Yellen mentioned at a information convention.

Yellen talked with China’s No. 2 chief, Premier Li Qiang, and different officers throughout 10 hours of conferences. She had a five-hour session Saturday together with her Chinese counterpart, Vice Premier He Lifeng. Treasury officers mentioned upfront there have been no plans for her to fulfill Chinese chief Xi Jinping.

Yellen obtained a heat welcome and outstanding protection by the state press, however Chinese officers gave no signal they might change industrial or different insurance policies that Washington and different governments say violate Beijing’s free-trade commitments. On Saturday, He mentioned Washington ought to “adopt a rational and pragmatic attitude” to enhance relations.

On Sunday, Yellen introduced no agreements on main disputes or plans for future exercise however mentioned her division and Chinese officers would have “more frequent and regular” communication.

U.S.-Chinese political strains are including to uncertainty that’s dampening the willingness of shoppers and companies to spend and make investments.

China’s financial development rebounded t4o 4.5% within the first quarter of 2023 from final yr’s 3% after anti-virus controls on journey and enterprise exercise had been lifted in December. But manufacturing facility exercise and shopper spending decelerated within the quarter ending in June.

Xi accused Washington in March of attempting to carry again China’s industrial growth.

Beijing has been gradual to retaliate for U.S. know-how restrictions, probably to keep away from disrupting its personal industries. But three days earlier than Yellen’s arrival, the federal government introduced unspecified controls on exports of gallium and germanium, metals utilized in making semiconductors and photo voltaic panels. China is the most important producer of each.

Yellen mentioned she tried to reassure officers Washington would not wish to decouple or separate its financial system from China, whereas it tries to “de-risk” commerce.

The Biden administration is urgent semiconductor makers to maneuver manufacturing to the United States to scale back reliance on Taiwan and different Asian suppliers, which is seen as a safety threat. Washington needs to develop alternate options to Chinese provides of uncommon earth parts, metals utilized in smartphones, wind generators and different merchandise.

“They have expressed some concern that de-risking amounts to decoupling,” Yellen mentioned. She mentioned she tried to “assure my Chinese counterparts that this is by no means the same thing.”

“The de-risking involves attention to clearly articulated and narrowly targeted national security concerns, as well as broader concern with diversifying our supply chains, which the United States is doing in a few important sectors,” she mentioned.

Throughout her go to, Yellen appealed for “healthy economic competition,” a reference to complaints Beijing violates its free-trade commitments by subsidizing and shielding politically favored industries from personal and international competitors.

Yellen mentioned she had expressed concern to Chinese officers about “coercive activities” towards U.S. corporations.

That follows raids on consulting corporations and the detention of employees members with out rationalization and what the U.S. authorities says is unfair detention or prohibitions on folks leaving China that some complain are used to stress them in enterprise disputes.

Chinese leaders try to revive investor curiosity, however international corporations are uneasy about their standing after Xi and different officers known as for financial self-reliance. The ruling social gathering has additionally expanded an anti-spying legislation that has fueled uncertainty about what legislation corporations or consultants can do.

On Saturday, Yellen appealed to He for cooperation on local weather change, the debt burdens of growing nations and different international challenges. She mentioned their governments should not let disagreements about commerce and safety derail financial and monetary relations.

Beijing broke off local weather discussions with Washington final August in retaliation for a go to by then-Speaker Nancy Pelosi of the House of Representatives to Taiwan, the self-ruled island democracy claimed by China as a part of its territory.

President Joe Biden’s local weather envoy, John Kerry, is because of develop into the following senior official to go to China subsequent week. China and the United States are the world’s high emitters of climate-changing carbon.

China signed an settlement final month to restructure the debt of Zambia, together with billions of {dollars} lent beneath Beijing’s Belt and Road Initiative to construct ports and different infrastructure throughout Asia and Africa. Treasury officers pointed to that as profitable cooperation.