China US Economic Working Group Holds Productive First Meeting

 Summary:

• The newly established Economic Working Group between China and the US held its first successful virtual meeting, focusing on macroeconomic policies and global challenges.
• Both sides expressed commitment to sustained communication, addressing concerns.
• The talks are part of ongoing economic and financial cooperation channels amid trade tensions.
• The group was formed in September alongside a Financial Working Group.
• Experts see the initial dialogue as encouraging but emphasize uncertainty in making substantial progress.
• Key topics include addressing US concerns about Chinese industrial policies and avoiding further tariff escalations.

The recently established Economic Working Group between China and the United States (US) conducted its first successful virtual meeting on Tuesday. The deputy minister-level discussions encompassed macroeconomic policies, bilateral economic relations, and joint efforts to address global challenges, as confirmed by China's Ministry of Finance. While China expressed concerns, both sides committed to sustained communication.

The US Treasury Department emphasized that the two-hour conversation was substantive, covering domestic and global economic developments, with US officials highlighting areas of concern. The working group, formed in September alongside a Financial Working Group, which held its inaugural meeting on Wednesday, aims to advance critical bilateral economic issues.

These talks are part of ongoing channels for economic and financial cooperation amid trade tensions and set the stage for an anticipated November summit between Presidents Xi and Biden. While the initial economic dialogue is seen as encouraging, experts acknowledge that substantial progress remains uncertain, with a focus on addressing US concerns about Chinese industrial policies and preventing further tariff escalations. Restored communication could foster goodwill and stability, but the transformation of discussions into tangible action presents a more significant challenge.