China sends more Politburo members to the US to prevent escalation of tensions

Mr. Liu He, Director of the Office of the Central Leading Group for Financial and Economic Affairs of China. Photo: AP

Liu He, director of the Office of the Central Leadership for Financial and Economic Affairs, is currently visiting the United States until March 3, seeking common ground with Washington on trade and macroeconomic policy, amid the increasingly clear prospect of a trade war.

Three weeks earlier, Chinese State Councilor Yang Jiechi, who holds a higher position than the Foreign Minister, was also in Washington to carry out a similar mission.

Analysts said the decision to send Mr. Yang and Mr. Liu, both members of the Politburo of the Communist Party of China, to the United States for a month signaled that the country was concerned that tensions could escalate into a trade war.

Professor Shi Yinhong, director of the Center for American Studies at Renmin University of China and an adviser to China's State Council, said it was possible that the White House had rejected the offer made during Yang Jiechi's visit.

“Liu He may offer more concessions on expanding the scope of US goods and businesses entering the Chinese market, but there is still a limit to what Beijing can offer as a compromise,” the expert commented.

An unnamed source said Mr. Yang pressed for the resumption of economic talks between the two countries, as well as discussions on other issues such as North Korea.

“I don’t know if the US administration is ready to have another dialogue,” the source said. “Yang’s visit… didn’t seem to achieve anything. And now they have to send Liu.”

According to the Financial Times, Mr. Liu is expected to meet with President Trump, along with senior US officials including top economic adviser Gary Cohn, trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Liu will also meet with a group of American businessmen at a roundtable event. Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai, said Liu's visit is notable because it coincides with an important session of the Communist Party of China Central Committee and the opening of the annual session of the 13th National Committee of the Chinese People's Political Consultative Conference, China's legislature.

“The Chinese side is under pressure due to the rising tensions in trade relations with the United States and wants Liu to come to Washington as soon as possible,” Wu said, adding that neither side could wait until the end of the Chinese legislature session.

Liu is likely to push for a date for the next round of economic dialogue and reaffirm Beijing’s economic reform plans to the Trump administration by the end of this year, the expert said.

Economic dialogue between the two countries has been stalled after the first round of dialogue in Washington last July ended in a stalemate./.