REFILE-U.S. Treasury’s Yellen, China’s Liu to satisfy in Zurich for first in-person talks

REFILE-U.S. Treasury’s Yellen, China’s Liu to satisfy in Zurich for first in-person talks

REFILE-U.S. Treasury’s Yellen, China’s Liu to satisfy in Zurich for first in-person talks

(Corrects reference to Xinjiang as a area, not province, in paragraph 11)

By Andrea Shalal

ZURICH, Jan 18 (Reuters) – U.S. Treasury Secretary Janet Yellen will meet Chinese language Vice Premier Liu He in Zurich on Wednesday for frank talks on the worldwide financial system, sovereign debt points and local weather change, because the world’s largest economies work to restore frayed relations.

Yellen’s first in-person assembly with Liu is a part of a broader Washington and Beijing push to extend bilateral communications following talks between U.S. President Joe Biden and Chinese language President Xi Jinping in Indonesia in November.

Liu, a confidante of Xi, urged international leaders gathered in Davos for the World Financial Discussion board to desert what he known as a “Chilly Warfare mentality” and develop worldwide cooperation on points akin to local weather change.

A Chinese language official stated Liu and Yellen would additionally contact on the opportunity of a world recession.

Yellen and different high U.S. officers say the U.S. financial system ought to be capable of skip a recession in 2023, however acknowledge slower progress is probably going.

China’s financial progress appears to be like set to rebound from mid-2023 following relaxed COVID-19 curbs, after slumping to certainly one of its worst ranges in practically half a century.

The IMF has warned towards decoupling the worldwide financial system into two competing blocs, saying it may cut back international financial output by as much as 7% – and much more in susceptible nations.

Doug Barry, former spokesperson for the U.S.-China Enterprise Council, stated it was crucial for the 2 nations to rebuild ties, at the same time as Washington and different Western nations diversify their provide chains and cut back nationwide safety vulnerabilities on sure Chinese language applied sciences.

“It is important that we’ve got these high-level bilateral contacts,” he stated. “However there isn’t any magic wand. It is not going to be simple to rebuild belief.”

Yellen’s assembly with Liu comes earlier than a three-country go to to Africa, the place she is going to push to develop U.S. commerce and enterprise ties with the continent, which China has lengthy dominated.

Yellen can be anticipated to repeat her criticism of Beijing – now the world’s largest creditor – for not shifting extra shortly to offer debt reduction, in addition to its use of compelled labor in China’s Xinjiang area and “non-market” financial practices.

Yellen has met just about 3 times with Liu since taking workplace, and met in Bali, Indonesia, with Chinese language central financial institution governor Yi Gang. Liu will step down this yr as a part of an overhaul of China’s financial management disclosed in September.

In December, Yellen instructed reporters she was additionally open to visiting China and regarded ahead to extra “intense interactions” with Chinese language officers.

For every day Davos updates in your inbox join the Reuters Each day Briefing right here (Reporting by Andrea Shalal; Enhancing by Josie Kao)

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