US Treasury Secretary Yellen and Chinese Vice Premier Liu He Hold Appeal
The flags of China, the United States, and the Chinese Communist Party are displayed at a flag stand at the Yiwu Wholesale Market in Yiwu, Zhejiang Province, China, May 10, 2019.
Song of Aly | Reuters
The United States and China said the two leaders spoke about the economy and cooperation, and “frankly” discussed issues of concern.
Yellen discussed the Biden administration’s plans to “support a strong and continued economic recovery and the importance of cooperating in areas that are in the best interests of the United States,” the Treasury said in a statement.
Liu and Yellen agreed that the economic relations of the two countries are “very important,” Chinese state media said, according to a CNBC translation. The report said the leaders held a broad discussion on the macroeconomic situation and multilateral cooperation.
Neither side shared more details about the conversation. The world’s two largest economies have remained close trading partners despite geopolitical tensions.
the US dollar weakens as the US central bank keeps interest rates low to support the economic recovery after the coronavirus pandemic. Partly because of this, the Chinese yuan is at its strongest against the greenback in about three years. This makes Chinese products relatively more expensive for American buyers.
Many economists in China are also concerned about the ripple effects of massive U.S. government spending intended to support growth.
Investors bet on a recovery, causing commodity prices to soar. the price hikes hit Chinese companies, prompting the Chinese central government to announce additional support and crack down on speculation in the market.
Chinese state media called the two leaders’ discussion on Wednesday an attitude of “mutual respect,” a phrase Beijing often uses to call for more favorable communication with the United States.
Last week, Liu spoke with US Trade Representative Katherine Tai for the first time since Biden took office.