US urged to stop crackdown against China as financial talks reportedly underway

Published : August 18,2024

Meeting sends positive signal that China-US communication continues amid growing tension

By Wang Cong and Ma Tong

China-US Graphic: GT

Chinese officials are expected to express concerns over US’ growing economic and trade restrictions against China and urge the US to stop politicizing trade issues, Chinese experts said, as Chinese and US officials reportedly kicked off a new round of financial talks on Thursday.  

While neither China nor the US has publicly announced the dates for the fifth meeting of the bilateral Financial Working Group, several US media outlets, citing US Treasury Department officials, have reported that the meeting was scheduled to take place on Thursday and Friday in Shanghai, where the two sides will reportedly focus on macroeconomic policies and financial stability, among other topics.

Amid growing concerns over the global economy, the new round of talks would send a positive signal that the world’s biggest economies are continuing communications amid growing tension. However, as Washington continues to intensify its crackdown campaign against Chinese products and businesses, China will firmly push back against US’ crackdowns and steadfastly promote high-quality development at its own pace, experts said. 

There was no official information released about the reported meeting in Shanghai as of press time on Thursday. Still, in line with the US’ long-standing practice ahead of talks with China, US officials have revealed their intensions for the upcoming meeting to US media outlets. A US Treasury Department spokesperson was quoted by Bloomberg as saying the talks will focus on issues including macroeconomic and financial stability, governance of the International Monetary Fund and capital markets issues. 

The topics are in line with those covered by the Financial Working Group, which was established last year and has held four meetings so far. The fourth meeting, which was held in April in Washington DC, also focused on monetary policies of the two countries and financial stability, according to an official Chinese statement at the time. 

“The China-US Financial Working Group is part of arrangements made to enhance communication in line with the consensus reached by the leaders of the two countries. Specific topics for discussions depend on the prevailing economic and financial situation, as well as the concerns of the two sides,” Zhao Xijun, co-president of the China Capital Market Research Institute at the Renmin University of China, told the Global Times on Thursday.

The fifth meeting comes as global markets are becoming increasingly concerned over the US economy. Recent disappointing economic indicators from the US, including the country’s unemployment rate, which rose to 4.3 percent in July, the highest since 2021, have rattled global markets. And some expect a slowdown and even a potential recession in the US economy. 

Against such a backdrop, the US’ focus on financial stability is within expectations, experts said. Notably, US Assistant Secretary of Treasury for International Finance Brent Neiman, who co-leads the group with his Chinese counterpart, said the US intended for the meeting to include conversations on “concrete steps we can take to improve communication in the event of financial stress.”

While talks and potential policy coordination between the two countries are in the interests of both sides as well as the global economy, the US’ sincerity in effectively addressing differences and stabilizing bilateral ties through talks remain in question, given Washington’s hostility toward China, experts said. 

“The US is pursuing talks with China due to domestic political and economic pressures, but it is not abandoning its long-term goal of containing China,” He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times. “We need to understand this and work to further stabilize bilateral ties.”

China’s firm stance

With regard to the US’ two-faced approach toward China, Chinese officials have clearly stated China’s firm stance, in that it will firmly counter Washington’s illegal crackdown measures, while remain open to dialogue. China has reiterated such a stance at various occasions. 

During a meeting of the China-US Economic Working Group, which was also set up last year along with the Financial Working Group, in April, the Chinese side expressed concerns over the US’ economic and trade restrictions against China and responded to claims of production capacity, the Ministry of Finance said at the time.

However, despite China’s repeated opposition, Washington has continued to escalate its crackdown campaign against China. Since the meeting in April, the US in May announced additional tariffs on a wide range of Chinese products, including electric vehicles. The US also reportedly planned to announce new restrictions on exports of semiconductor manufacturing equipment from foreign countries to Chinese chip makers, media reported. 

Responding to the reported plans, Lin Jian, a spokesperson for the Chinese Foreign Ministry, on July 31 slammed the US for continuing to politicize trade and tech issues, tie them to national security and use them as a weapon to tighten control over chip export to China. 

“Let me stress that containing and going after China will not stop China’s development, but will only make China even more determined and capable in boosting our own strength in technology and innovation,” Lin said at a regular press briefing. 

During the reported meeting in Shanghai, Chinese officials are also expected to reiterate China’s firm stance and brief their US counterparts about China’s reform and opening-up agenda outlined by the third plenary session of the 20th Central Committee of the Communist Party of China, experts said. 

“We have drawn up the direction and goals of our economic and social development. These goals include further deepening reform comprehensively to advance Chinese modernization,” Zhao said, noting that China will continue to help the international community understand its determination and confidence in its reform and opening-up and the new opportunities it will bring. 

 

globaltimes.cn