Against the backdrop of strained US-China relations triggered by national security concerns, such as the Taiwan issue, US export restrictions on advanced technologies, and China's state-led industrial policies, the United States has been actively working to mend ties with the world's two largest economies. Secretary of State Antony Blinken recently embarked on a visit to Beijing, marking the first trip by the highest-ranking US diplomat during President Biden's administration. Additionally, climate envoy John Kerry is anticipated to visit China later this month.

The diplomatic efforts by the United States precede a potential meeting between President Biden and President Xi Jinping, which may take place either at the Group of 20 summit in New Delhi in September or the Asia-Pacific Economic Cooperation gathering scheduled for November in San Francisco.

During her visit, Treasury Secretary Janet Yellen expressed her objective of establishing and strengthening connections with China's new economic team, aiming to reduce the risk of misunderstandings and foster cooperation in crucial areas like climate change and debt management. Yellen emphasized the potential for a mutually beneficial economic relationship that not only benefits both nations but also the world at large. She also highlighted the importance of enhanced and regular communication at the staff level.

Yellen conveyed to Chinese officials that they are welcome to raise concerns regarding US actions, enabling Washington to provide clarifications and, in certain cases, address unintended consequences resulting from actions that may not have been meticulously targeted.

In the course of her visit, Yellen held meetings with several officials, including Premier Li Qiang and People's Bank of China Deputy Governor Pan Gongsheng, whom she referred to as the head of the central bank, thus seemingly confirming his expected promotion.