Senior Chinese, U.S. economic officials meet, oppose decoupling

Published:November 11.2023

Chinese Vice Premier He Lifeng, also the Chinese lead person for China-U.S. economic and trade affairs, holds talks with U.S. Secretary of Treasury Janet Yellen in San Francisco, California, U.S., November 9, 2023. /Xinhua

China and the U.S. both stressed they do not seek decoupling as Chinese Vice Premier He Lifeng, also China’s lead person for China-U.S. economic and trade affairs, held multiple talks with U.S. Treasury Secretary Janet Yellen during his visit to the U.S. from November 8 to 12.

The Chinese side expressed its concern over the U.S. sanctions against Chinese enterprises, two-way investment restrictions, export controls and tariff measures on China, asking the U.S. side to respond with concrete actions.

The two sides reached an important consensus as they agreed to strengthen communication, seek consensus, manage differences, and avoid misunderstanding accidentally leading to escalation of friction. 

Both sides welcomed the establishment and meetings of the China-U.S. economic and financial working groups. The vice premier and Yellen also agreed to communicate directly with each other on a regular basis.

They also welcomed the development of a healthy economic relationship that provides a level playing field for businesses and workers in both countries and promotes the welfare of both peoples.

The two sides agreed to work together to address common challenges, including economic growth, financial stability and regulation, and to cooperate on economic issues related to climate change and the debt problems of low-income and emerging economies.

They also agreed to strengthen international financial architecture, promote meaningful quota replenishment of the International Monetary Fund and efforts to increase the voice of underrepresented members/regions through the new quota formula, and accelerate the adoption of reforms of the multilateral development banks to make them better, bigger and more effective.

Chinese Vice Finance Minister Liao Min said at a press briefing on Friday that China and the U.S. ties have strong momentum, solid foundation and broad space for mutually beneficial cooperation, but the prerequisite is equality and mutual respect. 

The legitimate concerns of both sides should be properly responded to, and only in this way can China-U.S. economic and trade relations be truly stable and far-reaching, Liao said.

In building its external economic relations, any country needs to balance the two goals of development and security, including the pursuit of diversification strategies in accordance with the principle of marketization, Liao said.

However, there is a fundamental difference between the diversification chosen by enterprises under the principle of marketization and the so-called “de-risking” that is currently being carried out on the grounds of “national security,” Liao said, noting that the latter violates basic economic principles such as division of labor and cooperation, and will lead to market fragmentation and rising costs, which is not conducive to maintaining good economic relations.

Liao expressed hope that both sides will meet each other halfway, take practical actions to create the necessary conditions for the maintenance and development of bilateral economic relations to jointly benefit the enterprises and peoples of the two countries. 

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