Yellen Heads to China

Happy Friday! The head of the White House Office of Science and Technology Policy has instructed NASA to create a standard time zone for the moon by the end of 2026. We can’t even imagine how complicated this might be, but if the scientists would permit us to offer a word of advice: Whatever you do, don’t try to save any daylight. Trust us.

Quick Hits: Today’s Top Stories

  • National Security Council spokeswoman Adrienne Watson said Thursday—and the Israeli war Cabinet confirmed—that the Israeli government would take “immediate action” to increase the flow of aid into the Gaza Strip by coordinating with Jordan and opening a land crossing at Erez in northern Gaza and a port for the direct delivery of aid. Watson’s statement described the moves as coming “at the President’s request.” President Joe Biden spoke to Israeli Prime Minister Benjamin Netanyahu earlier on Thursday and conditioned U.S. support for Israel’s war on the country’s efforts to mitigate and address civilian harm in Gaza, after seven aid workers were mistakenly killed on Monday by an Israeli airstrike. Biden “underscored that an immediate ceasefire is essential to stabilize and improve the humanitarian situation and protect innocent civilians, and he urged the Prime Minister to empower his negotiators to conclude a deal without delay to bring the hostages home,” the White House summary of the call said. U.S. officials later clarified that a ceasefire should be contingent on the release of Israeli hostages. Axios reported Thursday that CIA Director Bill Burns is expected to travel to Egypt this weekend to meet with the head of Israeli intelligence and Egyptian and Qatari officials to continue efforts to secure the return of the remaining hostages in Hamas captivity.
  • A federal judge ruled on Wednesday that migrant children living in makeshift camps at the U.S. southern border awaiting asylum processing are in Customs and Border Protection (CBP) custody and are therefore subject to a 1997 court settlement requiring “safe and sanitary” conditions. The ruling came after a result of a class-action lawsuit on behalf of migrants living in the open-air camps, particularly in two areas along the California-Mexico border, while they wait to be arrested and processed by CBP officers. The judge held that CBP’s control over their ability to leave these camps meant that the children were functionally in their custody. 
  • Judge Scott McAfee—overseeing Fulton County District Attorney Fani Willis’ racketeering case against former President Donald Trump and more than a dozen co-defendants for efforts to overturn the results of the 2020 election in Georgia—on Thursday rejected Trump’s efforts to have the case thrown out on free speech grounds. “Even core political speech addressing matters of public concern is not impenetrable from prosecution if allegedly used to further criminal activity,” McAfee ruled. However, he left the door open for the defense to bring such a First Amendment challenge during the trial itself. Judge Aileen Cannon, presiding over special counsel Jack Smith’s case regarding Trump’s alleged mishandling of classified documents, ruled against Trump’s efforts to have the bulk of the case dismissed on the basis that the former president had a right to keep the documents based on the Presidential Records Act (PRA). However, Cannon also held that, although an argument about the relevance of the PRA “does not provide a pre-trial basis to dismiss,” neither does it foreclose the possibility of Trump using a PRA defense during the trial.
  • The centrist No Labels political organization announced on Thursday it was ending its effort to mount a third-party presidential campaign after failing to find candidates to run. No Labels “would only offer our ballot line to a ticket if we could identify candidates with a credible path to winning the White House,” the group’s CEO, Nancy Jacobson, said in a statement. “No such candidates emerged, so the responsible course of action is for us to stand down.” 
  • The nonpartisan, unicameral Nebraska Senate on Wednesday overwhelmingly rejected an effort to change the state’s Electoral College vote allocation to a “winner-takes-all-system” favored by former President Donald Trump. The current system, which gives two of the state’s five Electoral College votes to the candidate who wins the state and then a vote for each congressional district a candidate wins, is similar only to Maine and could result in the Democratic candidate picking up an Electoral College vote in deep-red Nebraska by winning the state’s single toss-up congressional district. Another bill to change the allocation is still in committee, with no vote currently scheduled before the end of the legislative session later this month.

More ‘Magic Mushroom’ Diplomacy

Chinese Vice Premier He Lifeng speaks during a meeting with U.S. Treasury Secretary Janet Yellen in Guangzhou, China, on April 5, 2024. (Photo by Ken Ishii - Pool/Getty Images)
Chinese Vice Premier He Lifeng speaks during a meeting with U.S. Treasury Secretary Janet Yellen in Guangzhou, China, on April 5, 2024. (Photo by Ken Ishii – Pool/Getty Images)

As the chief financial officer of the U.S. government, Treasury Secretary Janet Yellen has plenty of weighty decisions on her plate. But the secretary puts no less care into what’s on her dinner plate, making a point to sample the local cuisine during official trips around the country and the world. During her first visit to China as Treasury secretary last summer, Yellen enjoyed a mushroom dish—popular in Yunnan, a southwestern Chinese province—that apparently has “hallucinogenic properties” if not cooked correctly.

But Yellen’s latest trip to East Asia has nothing to do with magic mushrooms. She arrived Thursday in the Chinese export hub of Guangzhou as a representative of the Biden administration, which is concerned that China—facing a grim economic outlook and a cratering real estate sector—will turn to manufacturing as a solution to their woes and dump government-subsidized, cheap goods into the U.S. market. But it remains to be seen what policy tools U.S. officials may deploy to shield domestic industry.

Yellen laid out what she sees as the risks in a speech at a solar cell manufacturer in Georgia last week. “In the past, in industries like steel and aluminum, Chinese government support led to substantial overinvestment and excess capacity that Chinese firms looked to export abroad at depressed prices,” she said.“This maintained production and employment in China but forced industry in the rest of the world to contract. Now, we see excess capacity building in ‘new’ industries like solar, EVs, and lithium-ion batteries.” China’s overproduction, she’s argued, could depress prices and threaten U.S. and global manufacturing, particularly in the nascent green energy sector supported by funds from the 2022 Inflation Reduction Act. 

This content is available exclusively to Dispatch members
Try a membership for full access to every newsletter and all of The Dispatch. Support quality, fact-based journalism.
Already a paid member? Sign In
Comments (258)
Join The Dispatch to participate in the comments.
 
Load More