Janet Yellen met with Chinese Vice Premier to discuss economy and ease tension between the countries

Treasury Secretary Janet Yellen, right, shakes hands with Chinese Vice Premier Liu He during a bilateral meeting in Zurich, Switzerland, Wednesday, Jan. 18, 2023. (Michael Buholzer/Keystone via AP)

The United States Secretary of the Treasury, Janet Yellenmet with his Chinese counterpart on Wednesday and vowed an effort to handle differences Y “prevent competition from becoming something close to conflict” while the two nations try to thaw relations.

Yellen’s first face-to-face meeting with the Deputy Prime Minister Liu He it was the highest-ranking contact between the two countries since their presidents agreed last November to explore areas of potential cooperation.

Liu, for his part, said he was ready to work together to seek common ground between China and the US.

“No matter how circumstances change, we must always keep the dialogue and the exchanges“, said.

The meeting occurs when the economies of USA. Y China they grapple with different but intertwined challenges in trade, technology and more.

Yellen, in her opening remarks in front of reporters, told Liu: “While we have areas of disagreement and will communicate them directly, we must not allow misunderstandings, particularly those resulting from miscommunication, to unnecessarily worsen our economic relationship. and social bilateral”.

She said that the two countries “have a responsibility to manage our differences and prevent competition from becoming something close to conflict”.

Both economies have their challenges.

US, Chinese officials meet to discuss economy, seek to ease tension
The meeting comes as the US and Chinese economies grapple with different but intertwined challenges in trade, technology and more. (AP)

The Chinese economy is reopening after a COVID-19 resurgence it killed tens of thousands of people and shut down countless businesses. The United States is slowly recovering from the inflation highest in 40 years and is on track to reach its statutory debt ceiling, sparking an expected political showdown between Democrats and Republicans in Congress. The debt issue is of great interest to Asia, as China is the second largest holder of US debt.

There is also the Russian invasion of Ukraine, which is hampering global economic growth and has led the US and its allies to agree to a stop in it oil price to Russia in retaliation, putting China in a difficult position as a friend and economic ally of Russia.

And high interest rates globally have increased the pressure on debt-burdened nations that owe China vast sums.

“One wrong policy move or a reversal in positive data and we could see the global economy headed for a recession in 2023,” he said. Josh Lipsky, Senior Director of the Atlantic Council’s Center for Geoeconomics. “Both countries have a shared interest in avoiding that scenario.”

The world Bank reported last week that the world economy will be “dangerously close” to a recession this year, driven by weaker growth in all the world’s major economies, including the US and China. Low-income countries are expected to suffer from the economic downturns of the superpowers, according to the report.

“High on the list is debt restructuring,” Lipsky said of the talks on Wednesday. Several low-income countries are at risk of debt default in 2023 and many of them owe large sums to China.

“Leaders have been trying for two years to reach a deal and avoid a wave of defaults, but there has been little success, and one of the reasons is China’s vacillation. I hope Yellen will press Liu He on this at the meeting,” Lipsky said.

Liu laid out an optimistic view for the world’s second-largest economy in a speech on Tuesday at the World Economic Forum in Davos, Switzerland.

US, Chinese officials meet to discuss economy, seek to ease tension
The World Bank reported last week that the world economy will be “dangerously close” to a recession this year, driven by weaker growth in all the world’s major economies, including the US and China. Low-income countries are expected to suffer from the economic downturns of the superpowers, according to the report. (AP)

“If we work hard enough, we are confident that by 2023, China’s growth will probably return to its normal trend. The Chinese economy will see a significant improvement“, said.

Following her stopover in Switzerland, Yellen will travel to Zambia, Senegal and South Africa this week in what will be the first in a series of visits by Biden administration officials to sub-Saharan Africa during the year.

Zambia is renegotiating its nearly $6 billion debt with China, its biggest creditor. During a closed-door meeting at the Africa Leaders Summit in Washington in December, Yellen and Zambian President Hakainde Hichilema discussed “the need to address debt sustainability and the imperative to conclude a debt treatment for Zambia,” according to Yellen.

The Zurich talks are a follow-up to the November meeting between the president Joe Biden Y Xi Jinping of China on the sidelines of the Group of 20 summit in Bali, Indonesia. The two world leaders agreed to empower key senior officials to work in areas of potential cooperation, including fighting climate change and maintaining global financial, health and food stability. Beijing cut off those contacts with the United States in protest of then-House Speaker Nancy Pelosi’s trip to Taiwan in August.

“We are going to compete vigorously. But I don’t look for conflictsBiden said at the time.

The US Secretary of State, Anthony Blinkenwill travel to China in early February.

Among the economic pain points, the Biden administration has blocked the sale of advanced computer chips to China and is considering banning investment in some Chinese technology companies, possibly undermining a key economic goal Xi set for his country. Statements by the Democratic president that the United States would defend Taiwan from a Chinese invasion have also heightened tensions.

And while the US Congress is divided on many issues, House members agreed last week to further scrutinize Chinese investments.

Yellen has criticized China's trade practices and its relationship with Russia, as the two countries have deepened their economic ties since the start of the war in Ukraine.  REUTERS/Shelby Tauber
Yellen has criticized China’s trade practices and its relationship with Russia, as the two countries have deepened their economic ties since the start of the war in Ukraine. REUTERS/Shelby Tauber (SHELBY TAUBER/)

New House Speaker Kevin McCarthy of California identified the Chinese Communist Party as one of two “long-term challenges” for the House, along with the national debt.

“There is a bipartisan consensus that the era of trusting Communist China is over,” McCarthy said from the House floor last week when the House voted 365 to 65 — with 146 Democrats joining Republicans — to establish the Committee. House Select on China.

Last year, US Department of Commerce Added Dozens of Chinese High-Tech Firms to an Export Controls Blacklist, including makers of aviation equipment, chemicals, and computer chips, citing concerns about national security, US interests, and human rights. That move prompted the Chinese to file a lawsuit with the World Trade Organization.

Yellen has criticized China’s trade practices and its relationship with Russia, as the two countries have deepened their economic ties since the start of the war in Ukraine. In a July call with Liu, Yellen spoke “frankly” about the impact of the Russian invasion of Ukraine on the global economy and “unfair, non-market” economic practices, according to a US summary of the call.

(with information from AP)

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Source-www.infobae.com