A two-day new round of talks between senior economic and financial officials from China and the United States wrapped up in Shanghai on Friday, signaling that despite trade tensions, both sides are still seeking to stabilize relations and trade between the world's two largest economies.
The meeting was the fifth of its kind held by the China-U.S. Financial Working Group since the creation of two economic and financial working groups in September last year, focusing on issues including macroeconomic and financial stability, governance of the International Monetary Fund and the management of capital markets.
The U.S. delegation was reportedly led by Brent Neiman, the Treasury Department's assistant secretary for international finance, and was attended by senior officials from the U.S. Federal Reserve and the Securities and Exchange Commission.
"It's headed by officials at the treasury department, but it's not just people at the treasury department. It also includes people at the Fed reserve bank as well as the Securities and Exchange Commission. So apparently in my view, the range of topics may cover a couple of things in addition to the traditional macroeconomic policy coordination between the United States and China. Reportedly, for example, the topic of fintech is also going to be discussed," said Professor John Gong with the University of International Business and Economics in Beijing.
Some experts said they believe a discussion on preventing systemic financial risks would also have been on the agenda, as the U.S. national debt passed the 35-trillion-U.S.-dollar threshold in July, which has increased global concerns about financial stability.
Earlier this year, the International Monetary Fund issued a rare criticism of the U.S. for what it labeled unsustainable fiscal policy, which is creating risks for the global economy.
"And also reportedly, they're going to discuss the so-called issue of global financial stability. I think they're going to discuss the issues related to currency swaps between China and other countries. And China has initiated a quite large series of currency swaps with a range of countries, which is something the United States government also does," Gong said.
The talks comes as Washington continues to intensify its crackdown on Chinese products and businesses. Chinese officials have repeatedly expressed concern about growing U.S. economic and trade restrictions on China. They've urged Washington to stop politicizing trade issues.
Observers say, amid growing concerns over the global economy, the new round of talks sends positive signals that the world's two largest economies are continuing to communicate despite tensions.
Created last year, the Financial Working Group between China and the United States has held four meetings so far. It is a dedicated financial exchange mechanism which serves to transform the high-level agreements reached between the two countries into concrete action.
The fifth meeting comes as global markets become increasingly concerned about the U.S. economy. Recently some disappointing figures have been observed in the U.S., including the country's unemployment rate which rose to 4.3 percent in July, the highest since 2021.
China, U.S. finance officials seek to stabilize relations despite trade tensions
China, U.S. finance officials seek to stabilize relations despite trade tensions
