In a bid to foster increased dialogue amidst growing competition, the United States has announced the launch of fresh economic and financial working groups with China. These initiatives reflect the commitment of the two major powers to enhance communication channels.
The US Department of Treasury revealed on Friday that these working groups would be led by Treasury Secretary Janet Yellen and China’s Vice Premier He Lifeng. They are set to convene regularly, facilitating a structured platform for substantive discussions on economic and financial policies. Additionally, these groups will serve as conduits for the exchange of vital information concerning macroeconomic and financial developments.
“The two Working Groups will provide ongoing structured channels for frank and substantive discussions on economic and financial policy matters, as well as an exchange of information on macroeconomic and financial developments,” stated the Department of Treasury in an official statement.
This announcement follows Treasury Secretary Yellen’s visit to China in July, which was part of President Joe Biden’s administration’s efforts to stabilize relations with Beijing. In recent years, the relationship between China and the US has faced strains across various fronts, spanning trade, the status of Taiwan, territorial disputes in the South China Sea, and the US pushback against China’s growing influence in the Indo-Pacific region.
Nevertheless, senior members of the Biden administration have consistently emphasized their desire to manage these tensions and have underscored their preference for dialogue over confrontation with China.
Taking to social media to share her thoughts on the matter, Yellen expressed that these newly established working groups represent “an important step forward in our bilateral relationship.” She highlighted that these developments build upon her four-day visit to China two months ago, emphasizing the necessity of communication, especially when there are areas of disagreement.
“My trip to China aimed to establish a durable channel of communication between the world’s two largest economies, consistent with President Biden’s guidance following his meeting with President Xi in Bali. It is vital that we talk, particularly when we disagree,” she remarked.
Notably, US-China relations hit a low point in February when American forces downed a balloon that Washington alleged was being used by Beijing for espionage over its territory. China refuted these claims, stating that the balloon was a civilian airship used for meteorological research and had deviated from its intended course.
In the wake of this incident, both sides resumed high-level contacts, with US Secretary of State Antony Blinken visiting Beijing shortly before Yellen’s trip. Despite these efforts at dialogue, the Biden administration has maintained restrictions on trade with China in areas deemed critical to national security, such as high-end semiconductor technology.
