US Treasury Secretary Yellen Holds Talks With China’s Trade Negotiator

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U.S. Treasury Secretary Janet Yellen talked to China’s apical commercialized negotiator Liu He via video telephone connected Oct. 25, during which the 2 sides raised their respective concerns.

Yellen “frankly raised issues of concern,” the U.S. Treasury announced successful a abbreviated connection without elaborating what the issues were. The connection did adhd that the 2 held discussions connected “macroeconomic and fiscal developments” successful some nations.

China’s Ministry of Commerce did denote concerns Liu had raised during the virtual meeting. According to a Chinese readout, Vice Premier Liu expressed concerns implicit U.S. tariffs and sanctions, arsenic good arsenic the U.S. attraction of Chinese companies. The ministry described the bilateral speech arsenic “pragmatic, candid, and constructive.”

The virtual speech came little than a period aft Liu held an online meeting with U.S. Trade Representative Katherine Tai. During that talk, which took spot connected Oct. 9, Liu pushed Tai to cancel U.S. tariffs, portion the 2 sides “reviewed implementation of the U.S.–China Economic and Trade Agreement.”

The phase 1 commercialized deal, signed during the Trump medication successful January 2020, requires China to bargain astatine slightest $200 cardinal worthy of further U.S. goods and services implicit the adjacent 2 years. According to analysts from the Washington-based Peterson Institute for International Economics, China did not fulfill its acquisition commitments successful 2020 and met astir 69 percent done the archetypal 8 months of this year.

A fewer hours aft Yellen and Liu talked, China’s hawkish state-run outlet Global Times published its ain analysis, saying that it was the U.S. broadside that was “eager to engage” China since the speech took spot “after moving hours” successful the United States.

Moreover, the nonfiction claimed that “it is expected” that Washington would cancel the tariffs connected Chinese goods, arguing that the tariffs could beryllium “abolished successful an indirect way,” specified arsenic tariff exemptions.

Antonio Graceffo, an economics prof and China economical analyst, successful his analysis for The Epoch Times on Oct. 19, stated that U.S. tariffs “have punched a tremendous spread successful the Chinese economy.”

“Tariffs and different restrictions against China volition contradict the CCP [Chinese Communist Party] the wealth it needs to modernize its military, portion besides protecting U.S. jobs and securing U.S. nationalist defence by reducing U.S. dependence connected overseas proviso chains,” helium added.

On Oct. 4, Tai delivered a major argumentation address connected Sino–U.S. economical ties astatine the Washington-based deliberation vessel Center for Strategic and International Studies. During her speech, she said that Washington volition commencement a “targeted tariff exclusion process” to exempt immoderate Chinese imports from punitive U.S. tariffs, portion pressing Beijing implicit its nonaccomplishment to support its promises nether the signifier 1 commercialized agreement.

The time aft her speech, astatine slightest 2 U.S. lawmakers expressed concerns astir the Biden administration’s commercialized argumentation connected China.

“Ambassador Tai’s code accurately observed the zero-sum quality of the CCP’s concern policies and constricted imaginable for structural economical betterment successful China,” stated Rep. Michael McCaul (R-Texas), the pb Republican connected the House Foreign Affairs Committee, according to a statement.

He added: “However, aft galore months of waiting for the Biden administration’s China commercialized policy, determination inactive appears to beryllium nary program to counteract oregon insulate our system from the progressively antagonistic and damaging commercialized policies pouring retired of China.”

Rep. Kevin Brady (R-Texas), the apical Republican connected the House Ways and Means Committee, stated the Biden medication should determination connected to signifier 2 negotiations, according to a connection from his office.

“We could amended face China by proceeding to signifier 2 negotiations, oregon done high-standard caller commercialized agreements that fortify economical partnerships with our allies,” helium stated.

The Trump medication primitively wanted to clasp signifier 2 talks with Beijing to tackle much challenging issues specified arsenic China’s usage of authorities subsidies to enactment state-run companies. The talks ne'er materialized.

In aboriginal October, elder medication officials said during a property telephone that Washington won’t prosecute a “phase 2 negotiation,” but “will rise concerns connected [China’s] concern policies.”

Frank Fang

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Frank Fang is simply a Taiwan-based journalist. He covers quality successful China and Taiwan. He holds a master's grade successful materials subject from Tsinghua University successful Taiwan.