The Biden administration is sending five senior officials from the US Treasury to Beijing this week for economic talks that will heavily focus on China’s “non-market” policies that are adding industrial overcapacity, a Treasury official said on Monday.
Led by Treasury Undersecretary for International Affairs Jay Shambaugh, the delegation plans to hold frank discussions as part of the US-China Economic Working Group on Beijing’s subsidies that encourage excessive production of goods that threaten to flood global markets with cheap imports, the official said.
This includes electric vehicles, a sector that the Biden administration is trying to develop in the United States with its own fiscal subsidies.
The group will discuss the economic outlook for the US and China, investment screening regimes for national security in both countries, and opportunities for cooperation on climate change and debt relief for poor countries, the Treasury official said.
The emphasis on China’s industrial subsidies comes as the Biden administration continues a review of US tariffs imposed on hundreds of billions of dollars’ worth of Chinese imports by former President Donald Trump.