Agencies
BEIJING
Senior US and Chinese economic officials will meet for discussions in Beijing this week as the Biden administration seeks to – once again – make its case for Beijing to avoid roiling the rest of the world with an industrial policy that has stoked manufacturing exports.
During the talks of the so-called Economic Working Group, due to take place September 19-20, the US Treasury will lay out its concerns about China’s economic trajectory, especially its macroeconomic imbalances and industrial overcapacity, an official from the department said.
The Treasury official added that the US is concerned about Chinese policymakers’ preference to push manufacturing even further as China’s growth driver, with significant spillovers to American firms and workers.
US Treasury Secretary Janet Yellen has repeatedly warned that China’s overcapacity threatens to flood global markets with artificially cheap goods, killing off industries in the US and globally.
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.
The US delegation will be made up of officials from the Treasury and Federal Reserve Board and will be led by Treasury Undersecretary for International Affairs JayShambaugh.
“During our trip we will further our discussions on China’s macroeconomic imbalances and industrial policies that risk causing significant harm to workers and firms in the US and around the world,”Shambaugh said.
It’s important to have a “resilient channel” for talks, “especially in areas where we disagree”, he said.
The meetings are part of an effort by the Biden administration to maintain channels of communication with its key geopolitical rival, especially on shared challenges, while also pursuing policies to protect national security.
Yellen has met her counterpart, Chinese Vice-Premier He Lifeng, three times since last July – twice in Beijing and once in San Francisco.
The two countries agreed to set up two working groups to discuss economic and financial issues last September, shortly after Yellen’s first visit to China in her current role.
