The United States, Japan, Australia and the Philippines are holding their first joint war exercises in the South China Sea. On Thursday, President Biden is planning to host Japanese Prime Minister Fumio Kishida and Philippines President Ferdinand Marcos Jr. at the White House. On Sunday, the Chinese military held surprise navy drills in the South China Sea to counter the U.S.-led war games. Over the weekend, U.S. Treasury Secretary Janet Yellen met with Chinese Premier Li Qiang in Beijing. Yellen said U.S.-China relations are now on a “more stable footing.”

Treasury Secretary Janet Yellen: “As I have said, the United States seeks a healthy economic relationship with China that benefits both sides. But a healthy relationship must provide a level playing field for firms and workers in both countries.”

During an interview on CNBC, Yellen refused to rule out tariffs on Chinese green exports as China ramps up production of solar power technology, electric vehicles and lithium batteries.