China’s chief economics adviser and Vice Premier Liu He had a telephone meeting with U.S. Treasury Secretary Janet Yellen, which follows a call by Liu He last week with U.S. Trade Representative Katherine Tai. The talks with Tai were the first high-level contacts the two parties have had since Biden became President. But the discussion with Yellen takes the relationship to a higher level – and a broader discussion.
A Xinhua readout indicated that the two agreed that this was “a very important relationship.” Treasury said that Yellen had told Liu that the U.S. wanted to work with China on those topics that were in the U.S. interest. Reports indicate that the two discussed the bilateral trade relationship and the overall macroeconomic situation. With the U.S. holding interest rates down and China not following suit, the renminbi (RMB) currency is being revalued which will have a negative effect on China’s trade. China is also concerned about the huge amounts of money being released as “aid” which is already fueling inflation and raising the prices of things China buys on the world market.
