US Treasury Secretary, Janet Yellen, has appealed to China to collaborate with the United States in combating the “existential threat” of climate change. During her speech on Saturday, Yellen emphasized that as the two largest emitters of greenhouse gases, both nations share a joint responsibility to lead global efforts in climate action. She specifically called upon China to support the US-led Green Climate Fund.
Yellen’s visit to Beijing, spanning four days, aims to enhance bilateral relations between the two countries.
Formal cooperation on climate change between China and the US has been absent since the administration of former President Donald Trump. Furthermore, China temporarily suspended climate talks with the US last year when senior Democrat Nancy Pelosi visited Taiwan, which Beijing considers a breakaway province.
However, Yellen’s recent appeal suggests a potential resumption of cooperation. She urged China to work together with the US to combat climate change and mitigate its impact on developing countries. During a roundtable meeting with financial experts in Beijing, Yellen stressed the importance of China’s support for US-led institutions like the Green Climate Fund, which assists developing nations in adapting to climate change and reducing its consequences.
“As the world’s two largest emitters of greenhouse gases and the biggest investors in renewable energy, we possess both a shared responsibility and capability to lead the way,” Yellen affirmed. China currently holds the position of the world’s largest investor in solar energy, as well as the largest producer of solar panels and wind turbines. However, its carbon dioxide emissions increased by 4% in the first quarter of this year compared to 2022. Similarly, despite investing billions of dollars in climate change initiatives, the US observed a slight rise in emissions last year according to the International Energy Agency.
While Yellen advocates for China’s participation in funding the global transition to renewable energy, a major point of contention is China’s assertion that it remains a developing nation. Beijing argues that the responsibility for financing the energy transition falls upon the US and Europe due to their historical contributions to emissions. Yellen’s presence in Beijing is part of a broader effort to ease tensions and restore relations between the world’s two superpowers. US Secretary of State Antony Blinken visited Beijing last month, marking the highest-ranking US official to visit the Chinese capital in nearly five years. Blinken met with President Xi Jinping and Foreign Minister Qin Gang, expressing his hope for improved communication and engagement in the future.
However, the day following Blinken’s visit, President Joe Biden referred to Xi as a “dictator,” triggering protests from Beijing. While analysts believe Biden’s comment is unlikely to have a significant negative impact, it is widely regarded as unhelpful in resolving the issues between the two countries.
Furthermore, the ongoing trade dispute between China and the US shows no signs of imminent resolution. China recently announced stricter export controls on gallium and germanium, critical materials for computer chip production. Starting next month, special licenses will be required for the export of these metals from China, which currently holds the position of the world’s largest producer of gallium and germanium.