Positive talks between US, China urged

Positive dialogue and interaction are necessary between the United States and China on finance, trade and economics, instead of resorting to tariffs, an observer has said.

"Such dialogue leads to positive trade interactions," said Anthony Moretti, department head and an associate professor of the Communication and Organizational Leadership Department at Robert Morris University in Pennsylvania.

"It increases the potential for foreign-owned businesses in both nations. It carries with it the potential for good jobs for thousands of people."

Moretti referred to the fifth China-US Financial Working Group Meeting held in Shanghai on Aug 15-16.

"There exist two parallel tracks when you think of the US and China," he said.

"The political track is filled with all kinds of negativity from the US. Whether it be tariffs, other forms of sanctions, dubious legislative items or the daily negative rhetoric, not much in the way of positive news comes out of that.

"But the business community understands how essential it is for the US and China to find ways to keep as many doors open as possible and to ensure that optimistic dialogue exists."

Describing the conversation, William Pesek, a columnist focusing on global economics, politics and financial markets, called the "US-China financial stress hotline a well-timed connection" in an Asia Times article.

"The US and China's agreement to name point people to handle future 'financial stress events' in the world's two biggest economies and beyond could hardly be better timed," he said.

"This dialogue framework is the most notable deliverable from last week's meeting of the Financial Working Group created last year following US Treasury Secretary Janet Yellen's 2023 China visit."

Nicholas Tabor, deputy assistant secretary for international financial markets at the US Treasury Department, said in a speech in June that China and the US account for some 40 percent of global banking assets, and "are the home authority to 12 of the world's 30 global systemically important banks".

"The domestic financial stability of the US and China has significant implications for global financial stability, and our policies have an outsized effect on how financial risks evolve globally," Tabor said.

"Working directly with our Chinese counterparts can help advance many of Treasury's priorities, including our financial stability objective, our climate goals and the effectiveness of our global efforts to combat money laundering and illicit finance."

The process of establishing channels of communication has progressed, but "much remains to be done", he said.

Moretti said green technology is good for China, the US and the world, so it is meaningful to make efforts to "assist companies ...that create products that are cost-effective and good for the environment".

" (The politicians) know that cooperation in areas such as pandemic research, overcoming food insecurity, and creating good-for-the-climate products brings positive results when China and the US are working together," he said.

US President Joe Biden has touted green initiatives but also announced new tariffs on Chinese imports, including electric vehicles, amid US officials' accusations about Chinese manufacturing "overcapacity" and their concerns about "national security".

'Make no sense'

"If you say you believe in something, then demonstrate a real commitment to it," Moretti said, adding that the tariffs imposed by the Biden administration on Chinese EVs "make no sense".

"Washington wants a healthier climate, and yet it is deliberately blocking cars that are affordable, of good quality and good for the globe from US consumers. It defies common sense to preach a message of being climate-friendly and then slam the door on one such opportunity," he said.

"If the US showed a commitment to long-term strategic thinking, as China has when it comes to the most modern technologies, then it would enjoy strong market share for such products.

"They did not. So the criticism of China for doing so is weak."

Moretti said more governors and mayors are leading business delegations to China.

"Those local and state leaders understand that American jobs created by Chinese-based companies are as good as those from US-based companies. That is another example of win-win cooperation. We need to see more of that."