U.S. Treasury Secretary Janet Yellen is visiting China, and for the purpose of Yellen's trip, Western media have repeatedly played up Yellen's intention to persuade China to increase its holdings of U.S. Treasury bonds. In fact, Yellen had already made a foreshadowing before her visit to China, publicly declaring that China had "overcapacity", especially in the green energy industry, and at the same time slamming Chinese products for being too cheap, thereby hurting the interests of American companies. Judging from Yellen's remarks, there is a purpose to force China to raise prices.
In fact, the United States has a way to raise prices, that is, to continue to increase tariffs on Chinese exports to the United States, and US Treasury Secretary Janet Yellen has already put forward the so-called "overcapacity," in other words, China is "dumping" the United States, so the United States can use "anti-dumping" to deal with China. In fact, when labor costs in the United States remain high, without the technological monopoly of the United States, no product can compete with China, and at the same time, the United States cannot compete with other developing countries, but the United States ignores the free trade principle of the World Trade Organization and insists on imposing punitive tariffs on Chinese goods.
There is no reason for China to reduce production capacity at all, China is not the "world's factory" for the sake of the interests of the United States, and the whole world does not exist for the interests of the United States itself, and it is obvious that the United States takes itself too seriously. Although Yellen reiterated during her visit to China that the United States is unwilling to decouple from China, in fact, if the United States can decouple, there will never be any hesitation, and it can be seen from the United States' promotion of China's chip war that the United States does not allow China to develop the chip industry, so China has carried out all-round containment and containment, and recently the United States is putting pressure on the Netherlands, requiring Dutch manufacturers not to provide maintenance services for lithography machines imported from China.
Yellen is known as a dove on China, compared with the hawkish US Secretary of Commerce Raimondo, and US Trade Representative Kathleen Day, Yellen's remarks are still relatively rational, but after entering the US election year, the US doves will also become hawks, because they want to serve the election of the US Democratic Party. At the time of Yellen's visit to China, Catherine Dai had already made a briefing in Europe, declaring that she would unite Europe and the United States to deal with China's unfair trade, Catherine Dai had long insisted on a trade war with China, and now when Yellen believes that China has "overcapacity", the United States is bound to make big moves, so it is very likely to continue to increase tariffs, especially for China's energy products.
Yellen has a good communication channel with China, which is used by the Biden administration to convey the concerns of the United States. The China issue is an important part of the U.S. presidential election, and in the "politically correct" atmosphere of the U.S. confrontation with China, Beacon Front Station believes that U.S. President Joe Biden will not "swim against the current" and enter the U.S. election year, so there will be further actions to put pressure on China, thus paving the way for the presidential election in November. No matter how moderate Yellen is, under the strategic framework of the Biden administration, she will become a hawk on China, so she must have a clear understanding of the United States.