The Biden administration is set to dispatch a high-level delegation of Treasury Department officials to Beijing this week for a round of economic talks with Chinese officials. The talks are part of ongoing engagement efforts that President Biden and Chinese President Xi Jinping agreed to pursue last year. According to a Treasury official, the two days of meetings will include discussions on China’s use of nonmarket economic practices, industrial overcapacity, and ways to resolve sovereign debt burdens that have been hampering low-income countries.
The discussions will also cover the macroeconomic outlooks for both the United States and China, with the U.S. economy being touted as the most resilient in the world, while China continues to face challenges in its financial industry and real estate sector. The two countries will also talk about mutual efforts to combat climate change and investment screening programs that have created new economic barriers.
The visit by the Treasury Department officials could pave the way for a second trip to China by Treasury Secretary Janet L. Yellen, who traveled to Beijing last summer. The Biden administration has been trying to persuade Chinese officials that President Biden’s efforts to diversify American supply chains away from China are not meant to hurt Beijing’s economic development.
In an opinion on the topic, Eswar Prasad, a Cornell University professor and former head of the International Monetary Fund’s China division, commented that these trips have considerable significance for preventing any further escalation of hostilities, especially as election year rhetoric in the U.S. ramps up. He believes that both sides are eager to tamp down any further escalation of hostilities, indicating their willingness to continue looking for areas of collaboration despite recent tensions between the two nations.
Overall, the economic talks between the U.S. and China signal a continued effort by both countries to address economic concerns and work towards mutual understanding and collaboration.