Chinese vice-premier holds 'pragmatic and constructive' talks with US treasury secretary

Chinese Vice-Premier He Lifeng has held multiple rounds of "candid, pragmatic, in-depth and constructive" talks with US Treasury Secretary Janet Yellen in San Francisco on Thursday and Friday, according to the Ministry of Finance (MOF).

He, also China's lead person for economic and trade affairs with the United States, is on an invited visit to the US from Nov 8 to 12, ahead of Asia-Pacific Economic Cooperation (APEC) Leaders' Week 2023, which kicks off Saturday.

His dialogue with Yellen is also believed to have helped facilitate a productive meeting between Chinese President Xi Jinping and his US counterpart Joe Biden, a much-anticipated meeting between the two State heads since they shook hands in Bali, Indonesia in Nov 2022.

Engaged conversation plus working dinner time in the past two days had exceeded 10 hours, said Liao Min, vice-minister of finance.

The purpose of these talks is, based on July's meeting between He and Yellen in Beijing, to continue to implement the important consensus reached by President Xi and President Biden, to provide economic achievements for the upcoming meeting between the two presidents in San Francisco, and push China-US economic and trade relations back to the track of "healthy and stable development", Liao said during a news briefing after the talks.

"The relationship between the United States and the People's Republic of China is one of the most important relationships of our time," said Yellen during a news briefing to the media Friday. "The path it takes will shape opportunities and challenges for people in both our countries and around the world."

On a wide array of topics, the two sides have exchanged views ranging from China-US economic relations; macroeconomic and financial stability in China, the US and the world; coping with global challenges; to issues of mutual concern.

"The past two days of meetings in San Francisco have served as another step forward," said Yellen.

According to Liao, three major consensuses were reached between China and the US. First, both sides agreed to strengthen communication, seek consensus, manage differences, and avoid unintended escalation of friction due to misunderstandings. Specifically, the China-US economic and financial working group is to be established and led by officials at the deputy ministerial level. He and Yellen agree to communicate directly and regularly.

Secondly, China and the United States both emphasize that they would not seek economic "decoupling". Both countries welcome the objective of a healthy economic relationship that provides a level playing field for companies and workers in both China and the US and benefits the two peoples.

Thirdly, both sides agree to work together to combat common challenges, such as economic growth, financial stability and supervision; to cooperate on climate change-related economic issues and debt issues in low-income and emerging economies; to strengthen the international financial architecture, as well as to promote a meaningful quota increase for the International Monetary Fund and strive to increase the voice of underrepresented members/regions through a new quota formula, and accelerate the reform of multilateral development banks to make them better, bigger and more efficient.

In September, China and the US launched the Economic and Financial Working Groups to provide ongoing channels for engagement on substantive economic and financial policy issues, said Yellen, adding both Working Groups met for the first time in recent weeks and had their second meetings Thursday.

He also briefed Yellen on China's macroeconomic situation and policies this year. China's economic recovery continues to be strong, new drivers of economic development continue to emerge, and the foundation for long-term economic growth has been further consolidated, said Liao. "China has a strong internal driving force for development. The Chinese people are firm in their determination to live a good life. The Chinese government is firm in its determination to promote high-quality development.

"We also believe that if China is good, the world will be better. The sustained and healthy development of China's economy will definitely bring greater opportunities to countries around the world," Liao said.

"There is no substitute for in-person diplomacy," said Yellen. "I was pleased to have had the opportunity to interact with the vice-premier on a more personal level, as we did in our private meeting earlier today (Friday)," adding being invited by He, she will travel to China next year.

"Next week, we will also chair – and China will participate in – the APEC Finance Ministers' Meeting and Leaders' Meeting. In the coming months, our teams will continue deepening our communication through the Working Groups," Yellen said.

"We applauded the He-Yellen meeting which is conducive for the economic relationship between the world's two largest economies," said Jin Lan, president of Oregon China Council, who is with a delegation led by Oregon State Senator Michael Dembrow to attend the ongoing 6th CIIE in Shanghai. "Oregon as a trade-dependent state is eager to expand its export market in China, and we understand the significance of a steadier China-US trade relationship."

Meanwhile, China has explicitly expressed its concerns regarding the US two-way investment restrictions, sanctions against Chinese companies, export controls, and additional tariffs. "These measures disrupt normal economic and trade exchanges between the two countries, impede business expected earnings, and are not conducive to the long-term interests of American companies," said Liao. "United States should take concrete actions to respond to China's concerns. China will unswervingly defend its legitimate development rights and interests."

During his US visit, He also met with representatives from Chinese and US companies and listened to their thoughts and concerns.