Trade Dialogue: China, US Set Up Channels to Ease Tensions
Trade Dialogue between US Treasury chief Janet Yellen and Chinese Vice-Premier He Lifeng led to the establishment of working groups.
Sources say the two sides have resumed talks in several areas and are working on dialogue on arms control and AI
China and the United States announced on Friday that they have set up joint working groups on finance and the economy after months of talks on easing trade tensions, South China Morning Post reported.
The joint effort for trade dialogue under the auspices of Chinese vice-premier He Lifeng and US Treasury Secretary Janet Yellen would be the first tangible outcome of commitments made Chinese President Xi Jinping and US President Joe Biden, at their first face-to-face meeting as their countries’ top leaders last year.
“The two working groups will hold meetings on a regular and ad hoc basis to enhance communication and share views on issues related to the economic and financial fields,” state broadcaster CCTV said.
Talks on arms control and artificial intelligence have resumed. However, progress in military communication remains limited. Strained relations worsened due to perceived sovereignty breaches, resulting in the cutoff of communication channels.
Despite this positive development, skeptics question the working group’s ability to bring substantial improvements. They cite persistent issues, including US restrictions on chip exports and China’s curbs on rare metals.
The finance working group may focus on exchange rates and the Federal Reserve’s rate hikes. Still, some analysts believe the dialogue framework might not swiftly resolve the broader strategic conflict between the two nations.
Critics caution that, considering the history and structure of US-China relations, merely opening more channels may not reverse the downward trend. They predict a potential worsening of ties in the coming months.
