BEIJING (BLOOMBERG) - The United States and Chinese governments made some incremental progress in their economic and trade negotiations, with Chinese Vice-Premier Liu He and US Treasury Secretary Janet Yellen holding their second call in about four months on Tuesday (Oct 26).
China described the call as "pragmatic, candid and constructive" in a statement, saying the two sides agreed that it's important to strengthen communication and coordination of macroeconomic policies as the world's recovery faces a critical moment.
Overall US-China relations have improved since a phone call between Presidents Joe Biden and Xi Jinping last month, after the US administration became frustrated with Beijing's move to link progress on climate talks with other issues. Shortly afterwards, the United States reached a deal to release Huawei Chief Financial Officer Meng Wanzhou from extradition proceedings in Canada - one of Beijing's top demands.
Since then, the world's biggest economies have moved to rebuild communication lines cut off during years of clashes during the Trump administration over everything from trade and Taiwan to tech and the origins of the coronavirus. Mr Xi and Mr Biden are preparing to hold their first summit via video since the US presidential election, though have yet to set a date.
The call was the second time that Mr Liu and Dr Yellen have spoken since Mr Biden came into office, following a June discussion on how to "support a continued strong economic recovery and the importance of cooperating on areas that are in US interests, while at the same time frankly tackling issues of concern", according to a US statement at the time.
While the tone of Tuesday's Chinese statement was more positive than in June, there has been little substantive progress over trade or economic issues. The Chinese side once again expressed its views on US tariffs and sanctions and the treatment of Chinese companies, but there was no mention of Yellen's response in either the Chinese or US statements.
China has repeatedly said the US should remove the tariffs on Chinese exports imposed during the administration of former president Donald Trump, and is very critical of US sanctions against companies like Huawei.
Dr Yellen "frankly raised issues of concern" with Mr Liu, according to a US statement after the call . The two sides agreed to continue talking, both statements said, without providing any further details.
Earlier this month, US Trade Representative Katherine Tai said that she would push the Chinese to fulfil their commitments in the 2020 trade deal and later directly told Mr Liu about US concerns "relating to China's state-led, non-market policies and practices that harm American workers, farmers and businesses".
