Önder Özar Diplomasi Sevgisi: Bloomberg : US Treasury Secretary Janet Yellen and China’s Vice Premier Liu He met for three hours yesterday in what Washington called “candid, substantive and constructive” talks. Beijing described it as “professional, in-depth, candid and practical.”

Thursday, January 19, 2023

Bloomberg : US Treasury Secretary Janet Yellen and China’s Vice Premier Liu He met for three hours yesterday in what Washington called “candid, substantive and constructive” talks. Beijing described it as “professional, in-depth, candid and practical.”

The world’s business elite may be hobnobbing in Davos this week, but it was a few hours away by train in Zurich where the world’s most important economic relationship was getting further on track.

US Treasury Secretary Janet Yellen and China’s Vice Premier Liu He met for three hours yesterday in what Washington called “candid, substantive and constructive” talks. Beijing described it as “professional, in-depth, candid and practical.”

Key reading:

The meeting came at a critical time — with a potential global recession this year — a fate that could be cushioned by China’s emergence from strict Covid policies.

The two discussed inflation, US efforts to restrict China’s access to semiconductor technology and concerns about heavily indebted emerging-market nations.

There was no big breakthrough, but the meeting itself — following talks between presidents Joe Biden and Xi Jinping in Bali two months ago — was progress after years of worsening tensions.

It went so well, in fact, that Liu and Yellen walked off together during a coffee break, accompanied only by translators and, according to a US official, discussed many of the thorniest issues without the need for aides.

In statements afterwards, the two sides emphasized areas of agreement, including the need “to further enhance communication around macroeconomic and financial issues.” Yellen’s team said she’ll visit Beijing later this year, following an expected trip by Secretary of State Antony Blinken.

There’s plenty China and the US still don’t agree on, including Taiwan and tariffs. But the dysfunction that has characterized ties for years appears to be in the rearview mirror, for now.

And that’s something the business leaders in Davos will find time to toast. — Bill Faries

Liu with Yellen yesterday. Photographer: Sebastien Bozon/AFP/Getty Images

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Global Headlines

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Ukrainian President Volodymyr Zelenskiy made an appeal at the World Economic Forum for allies to supply battle tanks, artillery and longer-range missiles.

Mass walkout | French labor unions plan to bring much of the country to a standstill today as protests gear up against President Emmanuel Macron’s proposed pension reform. Railways, schools, hospitals and air-traffic control are among the sectors to be affected by a 24-hour walkout against the government’s plans to raise the retirement age to 64 from 62.

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Shock resignation | New Zealand Prime Minister Jacinda Ardern, 42, announced she is stepping down in a shock resignation ahead of a general election in October. Ardern, who became the world’s youngest female leader when she led the Labour Party to power in 2017, said she doesn’t have the energy or inspiration to seek reelection.

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Bloomberg TV and Radio air Balance of Power with David Westin on weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online here.

News to Note

Close to half a million workers are ready to strike on Feb. 1 as Britain faces an escalation of industrial action across a number of sectors.
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The UK won’t call an election in Northern Ireland immediately after a deadline for the devolved government to be formed expires tonight, but will consider all options as negotiations continue with the European Union on the region’s post-Brexit status.
Biden heads for California today to visit communities devastated by storms and flooding to assess the need for additional federal support.
China’s censors say they’ll curb online speculation about Covid-19 over the coming Lunar New Year holiday, a bid to stifle criticism of the government’s handling of the pandemic. And click here to read about tensions that have brewed over annual bans on fireworks.
Afghan Foreign Minister Amir Khan Muttaqi appeared to use women’s rights as a bargaining chip to seek sanctions relief, telling a United Nations official that Taliban leaders currently saw little incentive to shift course.

And finally ... To win reelection in a landslide last year, Florida Governor Ron DeSantis harnessed the power of a key group of voters — motivated parents — in a strategy that could serve him well if, as widely expected, he runs for president in 2024. Michael Smith explains how the potential Republican rival of Donald Trump was able to exert his influence in local school board races, convincing some moms and dads that he shares their values and concerns about what’s happening in classrooms and then harnessing it for his own political gain.