09 July 2023

Daily Newsletter

US Treasury Sec. Yellen to Visit China

The Facts

  • The Chinese Finance Ministry on Monday confirmed that US Treasury Sec. Janet Yellen will visit Beijing starting Thursday amid ongoing efforts to mend bilateral relations between the superpowers.

  • According to the US Dept. of the Treasury, during her July 6-9 trip, Yellen will address the need to "responsibly manage" relations between the world's two largest economies, establish direct lines of communication in "areas of concern," and cooperate to tackle global challenges.

  • In her talks with top PRC officials, she is reportedly expected to also raise concerns about the impact of a new Chinese counterintelligence law on foreign and US companies and touch on economic measures to protect US national security from China.


The Spin

Establishment-critical narrative

Yellen's trip is the latest chapter in the US' diplomatic charm offensive, which offers nothing but empty words that conflict with its hostile policy toward China. The US may now be striking more moderate tones, talking about "de-risking" rather than the foolish "decoupling" of the US economy from that of China. Yet even more pragmatic US officials like Yellen cannot hide the fact that Washington is basically pursuing a hegemonic "de-China" strategy aimed at containing the PRC's economic and technological rise. With this tactic, the US ends up hurting itself the most.

Pro-establishment narrative

Although Sino-US relations are strained, Yellen enjoys credibility in China, where she has emerged as a proponent of constructive bilateral ties at a time of growing mistrust between Washington and Beijing. As a pragmatist, Yellen embodies the Biden administration's recent "de-risking" approach, which aims to protect US national interests rather than seeking a full economic disengagement that would cause massive damage to both countries and the global economy. While Yellen's trip is unlikely to lead to a breakthrough, it is another step toward de-escalation.

Nerd narrative

There is a 15% chance that the US and China will be at war before 2035, according to the Metaculus prediction community.

See sources

China to Send Hospital Ship on South Pacific Tour

The Facts

  • The defense ministry of China announced Sunday that it is sending its hospital ship "Peace Ark" on a tour of the South Pacific, visiting five countries and providing free medical assistance to Chinese citizens and local residents.

  • China's 14.3K-ton hospital ship will visit Kiribati, Tonga, Vanuatu, East Timor, and the Solomon Islands. The mission, dubbed “Harmony Mission 2023," is seen as an attempt by Beijing to assert its influence in the region amid growing competition with Washington.

  • China signed a security pact with the Solomon Islands last year, with China's foreign minister saying the relationship could serve as a model for other Pacific countries. The US has tripled funding for the region, opened diplomatic missions in Vanuatu and Tonga earlier this year, and in May signed a defense agreement with Papua New Guinea.


The Spin

Pro-China narrative

The Chinese hospital ship, Peace Ark, is Bejing's goodwill ambassador and symbol of soft power. Its Harmony Mission 2023 in the South Pacific seeks to persuade and attract islanders through culture, values, and diplomacy, aiming to win the hearts and minds of the people in the region, as well as enhance China's reputation in the international community.

Anti-China narrative

Much to the dismay of the United States and its allies in Australia and New Zealand, China is sending its military-run hospital ship on a goodwill trip to the South Pacific as competition grows for influence in a region long viewed as part of America's sphere of influence. The US should step up its game in the Pacific to compete with the PRC's projection of soft power.

Nerd narrative

There is a 23% chance that the Solomon Islands will host a Chinese military base before 2032, according to the Metaculus prediction community.

See sources

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