A group of senior Biden administration officials is traveling to Shanghai this week for high-level meetings aimed at maintaining stable economic relations between the United States and China amid rising trade tensions. The discussions, set for Thursday and Friday, are part of the U.S.-China Financial Working Group, established last year. Key topics will include economic and financial stability, capital markets, and efforts to curb the flow of fentanyl into the United States.
Despite improved communication over the past year, the economic relationship between the two nations remains tense, particularly over disagreements on industrial policy and China’s dominance in green energy technology. The Biden administration has recently imposed new tariffs on a range of Chinese imports, including electric vehicles and semiconductors, and restricted American investments in sectors deemed a national security threat. These issues continue to strain the relationship between the two economic powers.
The U.S. delegation, led by Brent Neiman, the Treasury Department’s assistant secretary for international finance, includes officials from the Federal Reserve and the Securities and Exchange Commission. They will meet with senior Chinese officials, including Xuan Changneng, deputy governor of the People’s Bank of China. This meeting marks the fifth session of the financial working group and the second time it has convened in China. Both countries have been conducting financial shock exercises this year to prepare for potential crises that could impact the global financial system.