On Thursday, U.S. Treasury Secretary Janet Yellen announced that the United States will resume economic talks with China “at an appropriate time.” This comes as Beijing continues to sell its vast stock of Treasurys and Washington warns against possible sanctions violations related to Russia. Yellen did not give a specific timeline for the talks, but she stated that she believes it is important to have them and that she is open to conversations.
Yellen emphasized the importance of good communication between the two countries in addressing global challenges such as food security, debt, and climate change. She stated that there are “many areas” where the U.S. and China need to work together to ensure the macroeconomic and financial stability of their respective countries and the global economy at large.
Yellen’s announcement follows her meeting with the Vice Premier of the People’s Republic of China, Liu He, on January 18th. The meeting was focused on discussing economic policies and was described by Yellen as “constructive.” Both U.S. President Joe Biden and Chinese President Xi Jinping have called for more cooperation between the two nations in the past.
Yellen’s comments also come as Russia looks to deepen its ties with China, with an expected meeting between President Xi and Russian President Vladimir Putin this spring. China’s holdings of U.S. government bonds reportedly stood at $862.3 billion as of Refinitiv data, the lowest level since May 2010, with Beijing’s holdings shrinking by $173.85 billion over the course of 2022.