This is how Yellen negotiated with China. She proposed to cancel the additional tariffs imposed during the Trump era, but requires China to meet the 3 following conditions:
1. Buy $850 billion US treasury bonds
2. Withdrawal of China's counter-sanctions (export restrictions of the two rare metals indispensable for the making of high-end chips etc)
3. Pledge not to support Russia.
All these conditions are unilaterally advantageous to the USA. Tariff removal will to some extent advantage China. However given 90% of the cost of the tariffs are borne by US consumers, it will mainly serve to bring down the US inflation.
Secondly, Yellen wants China to forgive the BRI debts. Thus, the cash flow derived from the infrastructure projects China financed and built for developing countries will be repurposed to pay back debts of US banks and the IMF. So in the end, everything China had built for the Global South will serve as the collateral when these countries borrow from the US.
Americans must be very proud of the extremely clever way their politicians has aggressively protected US interests from the position of strength.
China answered - *NO*.
Not surprisingly the US is nostalgic of the era of the eight allies invading China in 1900. A photo of that shameful event is still hanging on the wall of the US military headquarters and another such photo is on the wall of the US embassy. The US 'sensitivities' obviously doesn't apply to China. Imagine if on the US embassy walls were hung pictures of their ancestors' slave markets, or their early settlers giving smallpox infested blankets to the American natives.
In 1900, China was as helpless as the American Indians when they were facing European invaders. The westerners had advanced weapons, forcing China into total submission within months from the start of any war with them.
China subsequently were forced to sign the unequal treaties, such as the Boxer Protocol, one of the many unequal treaties that marked China's one hundred years of humiliation, having to hand over war compensation of 18,000 tons of silver to these invaders. Lands and ports were turned over as foreign concessions.
The eight country alliance, (ie, the current G7 plus Russia) carved up China amongst themselves. The world has not changed, what has changed is China. China has become stronger. This is China's patriotic lesson from these westerners. The historical shame is deeply burnt into the psyche of every Chinese, including those overseas Chinese who still regard themselves as Chinese.
Yellen invited a group of pro-American feminist economists to dinner. While Pro-Chinese academics in USA are under CIA/FBI surveillance and are frequently thrown in prison and charged for espionage, Yellen is free in China, she can meet anyone she pleases.
As usual, Yellen told her Chinese guests that the USA government is only against the Chinese government but not against the Chinese people. She seem to suffer from an information lag. Twenty years ago, many Chinese liberals bought that. Today, Chinese people don't buy that anymore.
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