August 17, 2024

The reported meeting of China-US Financial Working Group, which was widely expected to focus on topics such as macroeconomic and financial stability, governance of the IMF and capital markets issues, signaled that despite the trade tensions, both sides are still seeking to stabilize relations between the world's two largest economies.

The reported meeting demonstrated China and the US' willingness and practical need to deepen cooperation in the financial sector, which is expected to enhance understanding and trust in bilateral relations. Also, given the relatively weak global economic growth, weaker-than-expected August jobs report in the US and fears of a hard landing for the US economy which unsettled the global market, the reported meeting is seen as a positive step toward promoting global financial stability, experts said.

However, the reported meeting took place as the US continues to escalate its crackdown on various Chinese industries, including electric vehicles (EVs) and semiconductors, which could hinder economic and trade cooperation. Experts urged the US to take concrete actions to ensure smooth communication and cooperation in the economic and trade fields.

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