Treasury Secy Yellen hopes to build on US-China thaw at India G20 gathering

By Christopher Condon
 

US Treasury Secretary Janet Yellen said she’s eager to build on recent improvements in US-China relations as finance chiefs from around the world gather in India to address global economic challenges in the coming days.
 

After Yellen held landmark talks in Beijing July 6-9, she’s now in Gandhinagar, India, for a gathering of finance ministers and central bank governors from Group of 20 countries.

“Last week’s visit served as a step forward in putting our relationship on surer footing and establishing a resilient and productive channel of communication,” Yellen said of her Beijing trip in prepared remarks for delivery Sunday morning local time in Gandhinagar. “There is much more work to do. But I believe this trip was an important start.”

Yellen is expected to take questions from the press following her remarks.

The Treasury chief will need more cooperation from China if she’s to see greater progress on one of her priority topics at the India meetings: debt relief for struggling poor nations.

Debt Relief

After months of holding out, Beijing agreed on June 23 to participate in a restructuring of debt owed by Zambia. Yellen and others are hoping the deal will serve as a template for similar agreements between creditors and other countries, including Ghana, Ethiopia and Sri Lanka.

Yellen said she’s also hoping for progress at the G-20 sessions in her push to reform the World Bank and other multilateral development banks, and for members of the group to continue support for embattled Ukraine.

Many will also be watching for any sign that China, with tensions between Beijing and Washington cooling, proves as eager as in the past to shield Russia from criticism over its invasion of Ukraine.

At G-20 meetings over the past 16 months, China has helped to block consensus statements condemning Moscow and blaming its invasion for global economic woes.