China and US agree to new economic dialogue

The US and China have formed two working groups to address economic and financial concerns, in the latest move to boost dialogue and stabilize the tumultuous US-China relationship.

The groups will be overseen by US Treasury Secretary Janet Yellen and her Chinese counterpart, Vice Premier He Lifeng, two months after Yellen visited Beijing for consultations with top Chinese economic leaders.

Yellen said that the formation of the groups, which sprang from her July visit, was “a significant step forward in our bilateral relationship.”

“The groups will act as essential platforms for communicating America’s interests and concerns, as well as encouraging healthy economic rivalry among adversaries,” Yellen said.

The decision comes one week after US National Security Adviser Jake Sullivan met with Chinese Foreign Minister Wang Yi in a covert two-day meeting in which the two nations agreed to hold dialogue on subjects ranging from Asia-Pacific strategy to maritime challenges.

According to one senior US source, the officials also agreed to talk about weapons control.

It also followed US Commerce Secretary Gina Raimondo’s visit to China last month, during which she established numerous new official channels of engagement, including an information exchange on export controls and a “commercial problems working group” to resolve trade and technological concerns.

According to the US Treasury, the economic group would strive to stabilize bilateral economic relations and create a route for the nations to collaborate on global concerns such as debt restructuring for low- and middle-income countries. The financial working group will address concerns about regulatory and financial stability.

The formation of the groups is the latest indication that the countries are seeking to resolve the conflict that arose in February when a suspected Chinese spy balloon soared over North America before being shot down.