US Yellen and Chinese Liu He Hold First Face-to-Face Meeting at Davos

[Asia Economy Reporter Yujin Cho] U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier Liu He will hold their first face-to-face meeting at the World Economic Forum (WEF, Davos Forum) annual meeting on the 18th (local time).

The U.S. Treasury Department stated on the 16th, "Secretary Yellen and Vice Premier Liu will meet at the Davos Forum held in Switzerland on the 18th to exchange views on macroeconomic developments and economic issues."

This meeting between senior U.S. and Chinese officials is the first since U.S. President Joe Biden and Chinese President Xi Jinping met last November at the G20 summit held in Bali, Indonesia.

Janet Yellen, U.S. Secretary of the Treasury.
Photo by AP Yonhap News

According to Bloomberg News, sensitive issues such as U.S. semiconductor export restrictions to China and changes in China's economic policies following President Xi's re-election are also expected to be discussed during the meeting.

As U.S.-China tensions have shifted to advanced technology sectors such as semiconductors, the Chinese government, cornered by the U.S. restrictions imposed last October on exports of advanced semiconductor manufacturing technology, equipment, and personnel to China, has filed a complaint against the U.S. with the World Trade Organization (WTO).

Secretary Yellen has emphasized building "friend-shoring," which promotes trade relations with trusted economic partners to overcome global supply chain disruptions.

Friend-shoring is the U.S.'s new supply chain strategy to restructure supply chains centered on allied countries in advanced industries such as semiconductors, biotechnology, and artificial intelligence, aiming to reduce dependence on China and enhance stability. The strategy has accelerated in response to the COVID-19 pandemic and the Ukraine crisis.