The New York Times reported on the 5th that the U.S. Joe Biden administration plans to send a high-ranking Treasury Department delegation to Beijing, China this week.
U.S. President Biden and Chinese President Xi Jinping agreed last year to conduct in-depth high-level dialogue between the two countries in the fields of diplomacy, defense, and economy. Last year, U.S. Secretary of State Tony Blinken and Treasury Secretary Janet Yellen visited China for the first time in four years.
The first bilateral economic working group dialogue was held in Beijing in September last year, and in January this year, U.S. Treasury officials went to Beijing to hold financial dialogue.
The Ministry of Finance delegation dispatched this time will focus on economic policy and talk with the Chinese side. The Times, citing an anonymous source within the Ministry of Finance, reported that the soon-to-be officially announced delegation to Beijing will consist of five people led by Jay Sambo, the undersecretary for international affairs.
The delegation plans to have ‘frank talks’ with Beijing officials over the next two days about China’s non-market economic practices, such as government subsidies.
We also discuss the issue of overcapacity in manufacturing, which could cause a situation of cheap products in the global market. Financial officials from both countries also plan to discuss solutions to national debt, which is weighing down low-income countries’ finances and preventing sustainable economic development and response to climate change.
China is one of the world’s largest creditors to the government through the Belt and Road Project. The international community is urging China to cancel the debt of low-income countries and join global efforts to restructure hundreds of billions of dollars in debt.
The Times said the macroeconomic outlook for the two countries, which are the world’s first and second largest economies and an absolute prerequisite for the “health” of the entire global economy, will also be discussed.
The U.S. economy was expected to grow by about 1.6% at the beginning of last year, but grew by 2.5% (3.1% over the final four quarters), once again being evaluated as the most resilient and flexible economy in the world.
On the other hand, China improved from 3.0% growth to 5.2% growth last year, but continues to suffer from enormous local government debt, stock market instability, and real estate sector crisis.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.