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US flags concern on Russia, overcapacity in China talks
US flags concern on Russia, overcapacity in China talks
by AFP Staff Writers
Washington (AFP) Dec 16, 2024

US officials recently raised concern over Chinese firms' support for Russia, the Treasury Department said Monday, as they met Chinese counterparts in final efforts to shore up communications before Donald Trump returns to power.

In the discussions last Thursday on the sidelines of Group of 20 talks in South Africa, officials in outgoing President Joe Biden's administration also expressed concern on excess industrial capacity in the world's second biggest economy.

Washington has repeatedly warned of risks from China's overcapacity, fearing this could lead to a surge in underpriced goods to global markets.

The latest US-China economic working group meeting came shortly after US Treasury Secretary Janet Yellen stressed the need for communications at all levels between the world's two biggest economies to avoid deterioration in relations.

While economic and trade tensions have simmered during Biden's presidential term, tensions could grow under Trump's second stint in the White House.

Even before he takes office in January, the president-elect has already threatened sweeping tariff hikes on imports from China, and from Canada and Mexico.

For now, US officials have been trying to reinforce communications channels on economic matters.

During the working group meeting, both sides "discussed macroeconomic developments in each country including the impact of China's recently announced stimulus policy package," said the Treasury Department.

They also spoke on debt issues and support for low-income countries, while the United States raised issues "including the support of some Chinese firms to Russia's defense industrial base," the readout added, as the war in Ukraine continues.

The meeting was co-led by Treasury's Under Secretary for International Affairs Jay Shambaugh and China's Vice Minister of Finance Liao Min.

A separate US delegation is in Nanjing, China, for a financial working group meeting, with US officials seeking to discuss financial stability issues and other topics like anti-money laundering and countering the financing of terrorism.

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