Janice R. Andrews
The US and China have agreed to hold more talks in an effort to address major threats to the world economy. These talks will center on topics like the possible glut of low-cost Chinese goods, which the Biden administration believes could negatively affect US companies.
Treasury Secretary Janet Yellen revealed that this commitment was the result of lengthy discussions with her Chinese counterpart, stressing that it was a first step toward reducing tensions related to worries about overproduction.
Yellen told reporters, “The Chinese realize how concerned we are about the implications of their industrial strategy for the United States,” emphasizing the need for continued communication to arrive at win-win solutions.
In this context, Yellen’s first leg of her official visit to China consisted of two days of talks with Chinese Vice Premier He Lifeng in Guangzhou. A senior Treasury official stated that although the Biden administration had alluded to possible trade restrictions to protect impacted industries, the discussions did not immediately lead to such actions.
He and Yellen emphasized the need for thorough discussion to achieve balanced global economic growth, which Yellen called “significant.” It is anticipated that these talks would cover macroeconomic imbalances and how they relate to problems such as overcapacity.
Yellen continued to express concerns but also expressed confidence about the significance of these discussions in improving understanding of China’s policy. Plans are also on to create a channel of communication that would enable the two countries to regularly share updates and insights on their efforts to combat illicit finance.
Looking ahead, Yellen will be in Beijing for a meeting with Premier Li Qiang and other Chinese officials, which will signal the start of the next round of talks aimed at promoting economic cooperation and tackling common issues.
