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I think when the DMV manual says yield to cars "turning right", it is the actual action taken by the drivers.
because when you make a left turn, and your oncoming traffic is making a right turn, they are going into the same direction as you are, so you will have to yield to them to clear out a safe distance between you and others vehicles so you can make a safe turn.
From the picture, both of you are making left turns.
In that case, I believe there is enough room for both of you to turn at the same time. If there isn't, usually the person who gets to the intersection first has the right of way. But to be safe, you can always yield to other vehicles. Also, when you make a left-turn on a one-lane traffic like that, always be cautious about cars coming out behind the vehicle thats also trying to make a left turn. There are always people who just don't want to stop and wait.
And that is illegal! (at least in Calfiornia)
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