US Yellen-China Liu He Video Call: Discussing Economic Issues Including Tariffs and Supply Chains (Comprehensive)

[Asia Economy Reporter Jeon Jinyoung] On the 5th (China time), U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier Liu He held a video call to discuss economic issues such as U.S. tariffs on China.

According to Bloomberg and other sources, the U.S. Treasury Department released a statement saying, "Secretary Yellen and Vice Premier Liu had an honest and substantive dialogue regarding the macroeconomic and financial developments between the U.S. and China, rising commodity prices, and food security issues." It added, "Secretary Yellen candidly raised concerns about the impact of Russia's invasion of Ukraine on the global economy and China's unfair and non-market economic practices."

The Chinese Ministry of Commerce also stated that during the video call, Vice Premier Liu told Secretary Yellen that the removal of tariffs and sanctions and fair treatment of Chinese companies are areas of great concern for China. Both sides discussed economic policies and the stabilization of global supply chains and agreed on the importance of enhancing communication and cooperation between the U.S. and China for the benefit of both countries and the world. The Ministry of Commerce emphasized that practical and constructive communication took place.

This video call between the U.S. and Chinese ministers came amid the U.S. considering reducing tariffs on China. The Wall Street Journal (WSJ) reported the previous day, citing multiple sources, that U.S. President Joe Biden may announce this week a reduction in high tariffs on Chinese consumer goods such as clothing and stationery.

WSJ reported that President Biden has not yet made a final decision and the announcement timing could be delayed, but it is expected that a broad framework will be introduced allowing importers to request tariff exemptions along with the suspension of tariffs on consumer goods. On May 21, when President Biden expressed his willingness to speak with Chinese President Xi Jinping regarding tariff reductions, the market interpreted this as signaling that the timing for tariff cuts was imminent.

Within the Biden administration, Secretary Yellen has shown a positive attitude toward reducing tariffs on China to curb inflation, but U.S. Trade Representative Katherine Tai and White House National Security Council (NSC) Advisor Jake Sullivan reportedly held the position that tariffs should be used as leverage to obtain other concessions from China, WSJ reported.

The Chinese Ministry of Foreign Affairs emphasized the justification for reducing high tariffs on China and rebutted the U.S. accusations of "non-market practices."

Foreign Ministry spokesperson Zhao Lijian stated at a regular briefing that "China's position on tariff issues has been consistently clear," and "completely removing high tariffs on China is beneficial to both countries and the entire world."

He said, "According to forecasts from U.S. think tanks and institutions, completely abolishing high tariffs on China would reduce the U.S. inflation rate by 1 percentage point," adding, "Under the current high inflation situation, early removal of high tariffs on China would bring early benefits to consumers and businesses."

Spokesperson Zhao further emphasized that the U.S. claim of non-market practices "does not correspond to the facts," and highlighted that China's reform and opening-up have made important contributions not only to the Chinese economy but also to the global economy.

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