What’s new: China’s top trade negotiator Vice Premier Liu He discussed economic issues with U.S. Treasury Secretary Janet Yellen via video call on Tuesday, according to China’s Ministry of Commerce.
The Chinese side expressed its concern about issues including the lifting of additional tariffs on China and sanctions by the U.S. side, as well as fair treatment of Chinese enterprises.
China called the conversation “pragmatic and candid” and the exchanges “constructive.” The two sides agreed on the need to strengthen macro-policy communication and jointly maintain stability of global industrial and supply chains.
A readout of the call released by the Treasury Department said that Yellen “raised issues of concern including the impact of the Russia’s war against Ukraine on the global economy and unfair, non-market PRC economic practices.”
What’s more: The Wall Street Journal reported Monday that U.S. President Joe Biden is expected to announce that, as early as this week, his administration will drop some of the tariffs imposed on Chinese products by the Trump administration.
In a May speech, Biden had expressed his intention to do so to help control rising consumer prices in the U.S.
U.S. media reports said Biden has delayed the announcement of rolling back the Trump-era tariffs, showing there isn’t a consensus within the administration on how to manage the levies. Some believe they provide valuable negotiating leverage and put pressure on China while others, including Yellen, think they put an excessive burden on the U.S. economy.
Contact reporter Kelly Wang (jingzhewang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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