Top US Treasury Officials to Visit China to Discuss Economic Issues That Put the Two Superpowers at Odds

By Jace Dela Cruz

Feb 06, 2024 06:26 AM EST

A team of five officials from the US Treasury Department is heading to China this week to discuss a range of economic issues with their Chinese counterparts.

According to CNN, Jay Shambaugh, Treasury's Under Secretary for International Affairs, will lead the high-level US delegation that plans to discuss business and market practices that have put the two superpowers at odds. 

In particular, the delegation plans to discuss China's trade tactics, specifically its use of non-market economic practices and industrial overcapacity.

(Photo : STR/AFP via Getty Images)
Signs with the US flag and Chinese flag are seen at the Qingdao free trade port area in Qingdao in China's eastern Shandong province on May 8, 2019.

US Criticizes 'Unfair' Practices of China

CNN reported that in the past, Treasury Secretary Janet Yellen has criticized China for "unfair" practices and plans to erect barriers for foreign firms to enter the Chinese market and take "coercive actions" against US firms. 

According to the Treasury, there are also plans for candid talks on economic developments, including risks to the global economy and fiscal and central bank policies.

The visit marks the first meeting of the economic working group in Beijing since it was launched in September following Yellen's trip to China.

According to CNN, there is nothing to suggest the latest US-China meeting directly responds to the concerns about China's economy and financial markets. 

READ NEXT: China Unveils New Strategy to Turn Hi-Tech Lab Innovations Into Globally Competitive Products

Repairing US-China Relations

The meetings come as the two superpowers seek to iron out economic tensions. Yellen has made repairing the US-China relations a central part of her portfolio by improving communications and transparency, ramping up regulatory collaboration, and tackling issues like terror financing and fentanyl flow.

Federal Reserve Chairman Jerome Powell acknowledged challenges facing China's economy, particularly in the real estate sector, but suggested limited direct impact on the US unless significant disruptions occur.

"As long as what happens in China doesn't lead to significant disruptions in the economy or the financial system, then the implications for the United States - we may feel them a bit, but they shouldn't be that large," Powell said in a recent interview with "60 Minutes." 

READ MORE: China Is Lowering Reserve Requirements for Banks to Bolster Slowing Economy

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