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Chinese and US trade ministers have agreed to change trade and investment ties in their first call since the Biden administration began.
Chinese Trade Minister Wang Wentao and his counterpart Gina Raimondo “agreed to promote the healthy development of pragmatic trade and investment cooperation,” in a Chinese-made phone call Thursday morning. The two “exchanged views openly and pragmatically on relevant issues and mutual concerns”, according to the Chinese government statement.
The call was the third among senior officials in recent weeks, after Deputy Prime Minister Liu spoke with US Trade Representative Catherine Ty and Treasury Secretary Janet Yellen.
China said last week that normal communication between the two countries has begun, according to Trade Ministry spokesman Gao Feng. The two sides agreed to pragmatically address some issues for producers and consumers and to promote strong, stable economic and trade ties, he said.
However, US statements on relations with China are not so positive. Trade relations with China have “a significant imbalance ”and the Biden administration is committed to leveling it off, Trade Representative Catherine Ty said over the weekend ahead of a meeting of Asia-Pacific trade ministers.
“There are parts of US-China relations that are unhealthy and, over time, damage some very important ways for the US economy,” she said.
“I’m not going to worry too much,” said Alvin Tan, head of Asian currency strategy at RBC Capital Markets LLC. “It is positive in the sense that both sides are” strengthening “economic and trade communication, but no decisions or announcements have been made to change the game,” he said.
The offshore yuan reversed losses to gain as much as 0.1% at 9:32 a.m. in Shanghai, while the reference 10-year government bond yield continued to fall to two basis points. The land yuan opened 0.1% higher at 6.38 per dollar.
“With the help of James Meiger, Lin Zhu, and Livia Yap.”
(Update with background, market movement and comment)