Yellen and China’s Liu He are in person to discuss US technology policy

BEIJING – Chinese Vice Premier Liu on Wednesday discussed US economic and technology policy on China with US Treasury Secretary Janet Yellen, the Commerce Ministry said in a statement.

China “I hope that the American side will pay attention to the impact of the policies on both sides,” the reader said, according to CNBC translation.

The meeting in Zurich marked the first time Yellen and Liu met in person in three years since the end of the Covid-19 travel ban.

In October, the U.S. Department of Commerce’s Bureau of Industry and Security announced a ban on American businesses and individuals from working with Chinese partners on advanced semiconductors — a specialized industry that relies on U.S. and foreign equipment for development. The ban follows the Trump administration’s ban on Chinese companies such as SMIC and Huawei.

The Biden administration has also not lifted Trump-era tariffs on China.

Beijing has retaliated with its own tariffs, but its response to US tech restrictions was to file a dispute with the World Trade Organization in December.

A reading from the US Treasury Department did not mention the technology. “They exchanged views on macroeconomic and financial developments during a frank, objective and constructive discussion,” the Treasury said.

“She looks forward to traveling to China and welcoming her counterparts in the U.S. in the near future,” said Yellen.

The Chinese statement said it would welcome Yellen to visit China this year “at the appropriate time.”

Liu has led China’s trade negotiations with the US in China, is deputy prime minister and head of the Financial Stability and Development Committee.

“To tackle inflation, some countries have opted for policies that could lead to a deep recession-recovery,” Liu said in a speech at the World Economic Forum in Davos, Switzerland this week.

“We call for attention to ensure that the negative impact of large countries’ price increases on emerging markets and developing countries does not add to further debt or financial risks,” he said.

For China, Liu said, “High-quality economic development should always be our goal.” He said that measures to support real estate are effective and the country will pay more attention to attracting foreign investment.

China’s foreign direct investment grew by 8 percent in US dollars last year, according to the Chinese Ministry of Commerce. He noted that total investment from South Korea, Germany, the United Kingdom and the European Union had increased significantly, but he did not mention the United States.

Liu turns 70 this month and is retiring as China’s leader, according to a reshuffle announced at China’s ruling Communist Party congress in October.

Analysts expect He Lifeng, head of the National Development and Reform Commission, to play a role in guiding Liu’s financial and economic activities.