Treasury Secretary Janet L. Yellen will hold two days of high-level meetings with her Chinese counterpart, Vice Premier He Lifeng, this week, as the United States and China look to build upon an effort that started earlier this year to improve communication between the world’s two largest economies.
The meetings will take place on Thursday and Friday in San Francisco ahead of the Asia-Pacific Economic Cooperation summit, which begins on Saturday. The meetings will help lay the groundwork for expected talks at the summit between President Biden and China’s top leader, Xi Jinping. The Treasury Department said that the United States hoped Ms. Yellen’s meetings would “further stabilize the bilateral economic relationship” and make progress on key economic issues.
The revival of economic diplomacy between the two countries comes at a fraught moment for the global economy, which is grappling with sluggish output and wars in Ukraine and the Middle East.
A senior Treasury Department official said the Biden administration continued to seek a better understanding of China’s economic policies. Ms. Yellen is expected to talk to Mr. He about issues like debt relief for developing countries and the financing of international efforts to combat climate change. The discussions are also intended to address any misunderstandings from recent national security actions that the Biden administration has taken, such as restrictions on investments that Americans can make in Chinese industries.
The talks in San Francisco follow Ms. Yellen’s trip to Beijing in July. After that visit, the Treasury Department established financial and economic working groups to promote more regular dialogue between the United States and China.
As Treasury secretary, Ms. Yellen has been trying to help the United States diversify its supply chains so that it relies more on allies and domestic production and less on China, which over the past decade has similarly worked to become less reliant on imports.
In a speech at the Asia Society last week, Ms. Yellen said that the United States would continue to respond to China’s economic practices while seeking ways to work together where possible. But she also made clear that she opposed efforts to sever economic ties with China.
“A full separation of our economies, or an approach in which countries including those in the Indo-Pacific are forced to take sides, would have significant negative global repercussions,” Ms. Yellen said. “We have no interest in such a divided world and its disastrous effects.”