Yellen says it’s ‘critical’ to work with China after Biden calls Xi a dictator

Treasury Secretary Janet Yellen stressed the importance of maintaining a relationship with China after President Biden’s description of Chinese leader Xi Jinping as a “dictator” met fierce backlash from Beijing.

“With respect to the comments, I think President Biden and I both believe it’s critical to maintain communication … to clear up misperceptions, miscalculations. We need to work together where possible,” Yellen said at a news conference in Paris.

“But we have disagreements, and we are also forthright in recognizing we do have disagreements,” Yellen added.

Yellen’s remarks come after Biden’s comments to a group of 130 donors at a fundraiser Tuesday night made headlines. Biden discussed the Chinese spy balloon incident and described Xi as a dictator who got upset when the balloon was shot down because he didn’t know about it. 

“The reason why Xi Jinping got very upset in terms of when I shot that balloon down with two box cars full of spy equipment is he didn’t know it was there. No, I’m serious. That was the great embarrassment for dictators, when they didn’t know what happened,” Biden said at a fundraising event in Kentfield, Calif., Tuesday. 

“That wasn’t supposed to be going where it was. It was blown off course up through Alaska and then down through the United States and he didn’t know about it. When it got shot down, he was very embarrassed and he denied it was even there,” Biden added.

Biden’s remarks came shortly after Secretary of State Antony Blinken returned from China; the visit marked the U.S. top diplomat’s first to the country since 2018. The trip, which was postponed in February in the wake of the spy balloon incident, was meant to help stabilize the tense relationship between China and the United States. 

Beijing, however, immediately took issue with Biden’s comments. Foreign Ministry spokesperson Mao Ning said they “go totally against facts and seriously violate diplomatic protocol, and severely infringe on China’s political dignity.”

“It is a blatant political provocation. China expresses strong dissatisfaction and opposition. … The U.S. remarks are extremely absurd and irresponsible,” Mao said.

Yellen has recently advocated for improving the relationship between the United States and China, stressing the importance of cooperation for global stability.

At the two-day conference in Paris, which focused on improving the global financial response to climate change and poverty, Yellen said, “I’m certainly pleased to see China participating in this summit.”

“I believe it’s important, as President Biden does, that the world’s two largest economies are … working together in addressing global challenges,” Yellen said.

The Associated Press contributed.