WASHINGTON: US officials in outgoing President Joe Biden’s administration are set to meet their Chinese counterparts this week for economic talks, in final efforts to strengthen ties before Donald Trump’s White House return.
Economic and trade tensions between the world’s two biggest economies have continued to flare during Biden’s time in office.
But temperatures could rise further under Trump, who has threatened sweeping tariff hikes on Chinese goods ahead of his presidency.
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.
He added that the working group has provided an “open channel” to discuss topics including China’s industrial overcapacity while avoiding “unnecessary misunderstandings and escalation.”
Chinese officials have expressed concerns over the US’ growing economic and trade restrictions against China and urged the US to stop politicizing trade issues, Chinese experts said.
At the meeting this week, US Treasury officials are expected to raise issues of concern including recent Chinese export restrictions on certain key minerals, a department spokesperson said.
They will also discuss China’s excess industrial capacity, which they believe recent stimulus efforts have not fully addressed, among other issues.
Treasury officials and representatives from other agencies will also travel to the eastern Chinese city of Nanjing 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.
China’s delegation is expected to be led by People’s Bank of China deputy governor Xuan Changneng.
US Treasury Secretary Janet Yellen has repeatedly warned that China’s overcapacity threatens to flood global markets with cheap goods.
In May, the US increased tariffs on a range of Chinese-made products, and Yellen has been at the forefront of urging US allies also to act on the issue.
