US and China address trade tensions in rare high-level Washington meeting


China’s commerce minister and his US counterpart have raised issues about their nations’ commerce and funding insurance policies at a gathering in Washington however pledged to maintain channels of communication open within the first go to by a senior Chinese language official to the US capital since 2020.

The talks between Chinese language commerce minister Wang Wentao and US commerce secretary Gina Raimondo on Thursday got here with Washington and Beijing exhibiting tentative indicators of efforts to stabilise relations, which have hit their lowest level in 50 years.

Wang raised issues about US export controls in areas reminiscent of semiconductors, in addition to a proposal to review outbound investments for safety functions, in accordance with an announcement from Beijing’s ministry of commerce.

The US commerce division stated the officers had “candid and substantive” discussions, together with on the “total setting in each nations for commerce and funding and areas for potential co-operation”.

“Secretary Raimondo additionally raised issues concerning the latest spate of PRC actions taken towards US corporations working within the PRC,” the division stated, referring to the Individuals’s Republic of China.

Tensions flared over the weekend when the G7 group of industrialised nations, assembly in Hiroshima, issued a statement criticising China over safety points, reminiscent of its militarisation of the South China Sea and its use of “financial coercion” in commerce.

Beijing issued an offended response, accusing G7 nations of looking for to comprise different nations. It additionally announced a ban on Chinese language info infrastructure corporations shopping for chips made by US reminiscence chipmaker Micron Know-how, in what was seen as retaliation towards Washington’s curbs on the sale of superior semiconductors to China.

Chinese language authorities in main cities have raided international consultancies in latest weeks, together with shutting down the Beijing office of US-based due diligence group Mintz and detaining 5 of its native staff.

However analysts stated there have been indications the nations is perhaps attempting to place a ground underneath tensions, with US president Joe Biden additionally forecasting a “thaw” in relations on the finish of the G7 summit in Hiroshima. Chinese language state media final week stated Wang’s conferences in Washington indicated that either side “recognised the significance of financial and commerce relations”.

The US commerce division on Friday stated the assembly was a part of efforts to “keep open strains of communication and responsibly handle the connection”. It added that Raimondo had expressed her dedication to constructing on the “engagement” between Biden and Chinese language president Xi Jinping, who final met at a G20 summit in Bali in November.

“The 2 sides agreed to determine channels of communication and keep and strengthen exchanges on financial and commerce issues and different co-operation issues,” China’s commerce ministry stated on Friday.

Analysts stated the nations might be attempting to create the situations for Xi to go to the US in November for a gathering of the Asia-Pacific Financial Cooperation discussion board. Wang can also be anticipated to satisfy US Commerce Consultant Katherine Tai on the sidelines of an APEC assembly in Detroit, which ends on Friday.

“No person is anticipating structural change within the relationship, in fact, the ‘chilly battle’ will nonetheless be there,” stated Da Wei, director of the Middle for Worldwide Safety and Technique at Tsinghua College in Beijing.

However there could be a “decrease temperature, a minimum of from now to the tip of the 12 months”, he stated, including: “I hope the 2 sides can attain settlement that regardless of how unhealthy the connection, the dialogue ought to proceed.”

Further reporting by Maiqi Ding in Beijing

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