US-China officials to hold economic talks before Trump return

FILE PHOTO: U.S. and Chinese flags are set up at the Diaoyutai State Guesthouse in Beijing, on July 8, 2023. (AP Photo/Mark Schiefelbein, Pool)

Washington, United States — Economic officials in outgoing President Joe Biden’s administration are set to meet their Chinese counterparts this week for talks, in a final effort to strengthen ties before Donald Trump’s White House return.

The talks come as Treasury Secretary Janet Yellen stressed in an interview Wednesday the need for “ongoing communications at all levels” to avoid needless worsening in relations between the world’s two biggest economies.

Economic and trade tensions between Washington and Beijing have continued to flare during Biden’s time in office.

READ: Trump’s tariff plans may ‘derail’ US inflation progress — Yellen

But temperatures could rise further under Trump, who has threatened sweeping tariff increases on Chinese goods ahead of his presidency, most recently over concerns surrounding the flow of illegal fentanyl into the United States.

“It’s critical to have open channels of communication,” Yellen told Bloomberg Television, warning that Trump’s universal tariffs proposal would likely trigger retaliation.

For now, US officials are seeking to reinforce communication channels on economic issues.

On Thursday, Treasury Under Secretary for International Affairs Jay Shambaugh is due to meet Chinese Vice Minister of Finance Liao Min for an economic working group meeting on the sidelines of Group of 20 talks in South Africa, said the Treasury Department.

“The United States and China are the two largest economies on the globe, and the American people expect that we should be able to communicate directly with Chinese officials on both areas where we agree and especially on areas where we don’t,” said Shambaugh.

Treasury officials are expected to raise issues of concern like recent Chinese export restrictions on certain key minerals, a department spokesperson said.

They will also discuss China’s macroeconomic imbalances and excess industrial capacity, which they believe recent policy stimulus efforts by Chinese lawmakers have not fully addressed.

Treasury officials and representatives from other agencies will travel to the eastern Chinese city of Nanjing as well, for a financial working group meeting taking place Sunday and Monday.

“This upcoming meeting will continue our work to strengthen efforts to preserve financial stability and counter illicit finance threats like fraud and drug and human trafficking,” said Treasury Assistant Secretary for International Finance Brent Neiman, who is leading the US team.

China’s delegation is expected to be headed by People’s Bank of China deputy governor Xuan Changneng.