![The US Treasury Department is establishing US-China economic and financial working groups](https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ8L0JC_L.jpg)
©Reuters. The Treasury Department is pictured in Washington, US, April 25, 2021. REUTERS/Al Drago
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By David Lawder
WASHINGTON (Reuters) – The U.S. Treasury Department said on Friday it is formally establishing two new U.S.-China working groups on economic and financial issues, aimed at providing a regular forum for policy communications between the world’s two largest economies.
In a statement, the Treasury Department said the two groups would “meet on a regular basis” and report to Yellen and Chinese Vice Premier He Lifeng.
The Chinese Ministry of Finance will be the counterpart of the Ministry of Finance for the Economic Working Group, while the People’s Bank of China will be the counterpart of the Financial Working Group.
The formation of the groups followed Yellen’s visit to Beijing in July, where she met with He and other senior officials to restore communication on economic and financial issues after years of deteriorating relations.
Yellen said on promote cooperation on a global level. challenges.”
“It is essential that we talk, especially when we disagree,” she added.
China’s Ministry of Finance and the central bank both issued statements confirming the establishment of the economic and financial working groups, but provided few details other than saying they were aimed at strengthening communication and cooperation on these issues.
A senior Treasury official said Yellen reiterated to Chinese officials that the U.S. will use the groups to advance cooperation with China wherever possible on global challenges, including debt restructuring for distressed developing economies, climate finance and efforts against money laundering.
The creation of the two working groups also follows Commerce Secretary Gina Raimondo’s agreement with Chinese officials in August to create a working group on U.S. export controls aimed at explaining U.S. policy.
The Treasury and State Departments have held annual strategic and economic dialogue meetings with China in recent years, but that forum ended in 2017 after former President Donald Trump took office, ushering in a more confrontational approach to China in Washington that led to a yearslong tariff. war between the two countries.