July 05,2022:United States Treasury Secretary Janet Yellen and Chinese Vice Premier Liu He discussed economic issues including international trade and supply chains, as the Biden administration considers lowering tariffs on Chinese goods to tame soaring inflation.
In a virtual meeting with her Chinese counterpart on Tuesday, Yellen “frankly” raised concerns about China’s “unfair, non-market” economic policies and Russia’s war against Ukraine, the US Treasury Department said in a statement.
The two sides also discussed the global economic outlook amid rising commodity prices and food security challenges during the call, which the Treasury Department described as “candid and substantive” and part of efforts to “maintain open lines of communication”.
“The comments from Yellen don’t seem to go much beyond what US officials have said previously,” James Laurenson, director of the Australia-China Relations Institute, told Al Jazeera.
“The issue is what the US is going to do beyond just repeating the same accusations. Plenty of trade law scholars argue there’s considerable scope for seeking redress at the WTO but the US seems unenthusiastic towards the institution. But more unilateral sanctions won’t change Chinese policies and nor will they win the US plaudits even from close allies like Japan and Australia, who remain committed to the WTO and its processes.”
Following the call, China’s Ministry of Commerce said the “pragmatic and frank” talks touched on the macroeconomic situation and the stability of global supply chains.
China also expressed concerns about US tariffs and sanctions against Chinese firms, the ministry said, adding that both sides had agreed to continue dialogue.
“As the global economy faces grim challenges, there is a great significance to strengthen the communication and coordination of the macro policies between China and the United States,” the ministry said in a statement.
“Safeguarding the stability of global industrial chains and supply chains will serve the benefits of China, the US and the whole world.”
The talks come as US President Joe Biden weighs the possibility of easing tariffs on Chinese imports as part of efforts to control soaring prices, which are rising at their fastest rate in more than 40 years.
