Photo: Sebastien Bozon/AFP via Getty Images Top Chinese officials told Treasury Secretary Janet Yellen they are optimistic China can return to normal economic growth and avoid a crisis in its property sector, Axios' Hans Nichols reports from aboard Yellen's plane. Why it matters: China's economy is somewhat of a black box. The Biden administration — not to mention every investor with a Bloomberg Terminal — is eager to gain a better understanding. Driving the news: This week, Beijing's official GDP reading flashed 3% in 2022, down from 8.1% in 2021. The country's housing market is flirting with disaster. - Today's meeting between Yellen and China's Vice Premier Liu He in Zurich, Switzerland, gave Treasury officials a chance to hear Beijing's theory of its economy — as well as global growth — first-hand and in-person.
Between the lines: The mood of the meeting, which was attended by officials from both delegations, was largely positive. When it was over, Treasury quickly announced that Yellen would visit China in the "near future." - Yellen will also roll out the welcome mat to whoever replaces Liu in March, when President Xi Jinping unveils his new government.
What we're hearing: The Chinese delegation acknowledged the financial risks in the property sector but indicated it can bring it under control. - The officials didn't define what they meant by normal economic growth — only that they were confident that they can resume something close to it.
- In the decade before COVID-19, China's annual GDP averaged above 7%.
The other side: Yellen told her counterpart that the U.S. can avoid a recession and still bring down inflation. That's in line with her public comments. The intrigue: When the official agenda indicated it was time to raise any concerns, both sides said there was no need — as Yellen and Liu already discussed them one on one at a coffee break, according to the Treasury official. - That kept any difficult conversation — or confrontations — between the two principals.
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