In brief
As President-elect Donald Trump prepares to take office, the Biden administration is making an urgent effort to maintain open lines of communication with China amid looming economic instability.
The Biden team is dispatching a senior Treasury Department delegation to Nanjing, China, this week for a crucial meeting of the U.S.-China financial working group, aimed at enhancing collaboration ahead of Trump's inauguration next month. A parallel group of officials will also engage their Chinese counterparts during the Group of 20 summit in South Africa, as both countries strive to avert escalating tensions that could lead to economic confrontations.The agenda for these discussions includes longstanding issues, such as China's oversupply of green energy technologies in global markets and recent export restrictions on essential minerals. Treasury officials will also address concerns regarding Chinese support for Russia amid the ongoing conflict in Ukraine.According to Jay Shambaugh, the Treasury Department's under secretary for international affairs, effective communication between the U.S. and China is vital, given their roles as the largest economies worldwide. "The American people expect direct dialogue with Chinese officials to tackle both common interests and contentious issues," he emphasized.Despite the push for a more cooperative tone, the Biden administration's concerns regarding China's impact on global markets—particularly through the export of low-cost solar panels and electric vehicles—have largely been neglected. Moreover, evidence suggests that Chinese companies continue to assist Russia in sourcing military technology. In response, the U.S. has intensified protectionist strategies, choosing to keep tariffs originally implemented during the Trump administration on numerous Chinese goods intact, while introducing additional tariffs on various technology and energy products.As the Biden administration seeks to establish a more stable approach toward U.S.-China relations, the outcome of this week’s discussions could prove pivotal in shaping the economic landscape for both nations after Trump's entry into office.
