After 3 Months, US and China Face to Face... What Did They Talk About?

Discussion on Global Inflation Issues Including Tariff Reductions Likely
Possibility of Biden-Xi Jinping Summit Raised Ahead of Major Political Events in Second Half of Year

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The top diplomatic officials of China and the United States met face-to-face for the first time in three months. Attention is focused on the content of the talks due to the in-person meeting. It is presumed that both sides exchanged views on global economic issues such as inflation triggered by the Russia-Ukraine conflict.

[Image source=Yonhap News]

On the 13th (local time), Xinhua News Agency reported that Yang Jiechi, a member of the Political Bureau of the Communist Party of China responsible for foreign affairs, and Jake Sullivan, the U.S. National Security Advisor at the White House, met in Luxembourg to discuss international and regional issues. Yang and Sullivan had face-to-face talks in March and October last year in the U.S. (Alaska) and Switzerland (Zurich), respectively, and met in Rome, Italy, in March this year. This recent meeting was held without prior notice and reportedly lasted about five hours.

◆Marathon talks... only fundamental content disclosed = The U.S. White House stated in a press release that they had an honest and productive dialogue on key issues in U.S.-China relations as well as regional and international matters. According to the White House, Sullivan emphasized during the talks that "it is important to maintain open communication channels to manage competition between the two countries."

The Chinese side also described the meeting as an honest and constructive communication on China-U.S. relations and other shared interests. Yang told the U.S. side that "adhering to the three principles of mutual respect, peaceful coexistence, and win-win cooperation is the right path in bilateral relations."

Despite the marathon nature of the talks, the content disclosed by both sides to the media remained at a fundamental level, showing little difference from previous positions. Consequently, various speculations about the undisclosed content of the talks are emerging.

[Image source=Yonhap News]

◆U.S. and China ahead of important political events = President Joe Biden is approaching the midterm elections. China is preparing for the 20th Party Congress in the second half of this year, where President Xi Jinping’s third term will be decided. The political futures of the leadership in both countries hinge on these upcoming events.

The biggest obstacle to political events remains the economy. Last month, the U.S. Consumer Price Index (CPI) rose by 8.6% year-on-year, the highest increase since December 1981.

China faces a similar situation. Last month, China’s Producer Price Index (PPI) rose by 6.4%. China’s PPI influences global prices of manufactured goods. Additionally, lockdown measures due to the resurgence of COVID-19 make it practically difficult to achieve this year’s economic growth target of around 5.5%.

The economic challenges facing President Xi and President Biden are formidable. This is why there is speculation that both sides engaged in more substantive dialogue during this meeting.

◆Possibility of discussing U.S.-China win-win cooperation = There is an interpretation that attention should be paid to Yang’s remarks about win-win cooperation and the joint efforts of both countries for prosperity, stability, and development in the Asia-Pacific region during the talks. It is suggested that both countries might have discussed tariff reductions to curb the surge in international raw material prices triggered by Russia’s invasion of Ukraine.

The consensus is that the U.S. side likely sought justification for tariff reductions on Chinese products during this meeting.

China, too, would have actively engaged in the talks since the removal of punitive U.S. tariffs would enhance the price competitiveness of its products. Discussions on the Russia-Ukraine issue may also have taken place.

The possibility of a summit meeting between President Biden and President Xi is also being mentioned. A face-to-face summit on global economic issues could have a dramatic effect both domestically and internationally.

Meanwhile, it is reported that during the talks, Sullivan conveyed U.S. concerns to China regarding North Korea’s nuclear tests. A senior U.S. official stated, "Sullivan expressed particular concern about the veto exercised amid North Korea’s repeated ballistic missile launches in violation of United Nations Security Council resolutions and its potential preparation for nuclear tests."

This content was produced with the assistance of AI translation services.