Yellen, Liu agree to meet again after talks in Zurich

Jan. 18 (UPI) -- Treasury Secretary Janet Yellen and Chinese Vice Premier Liu He agreed to work together and keep talking on several issues after a two-hour meeting in Zurich that could lead to future visits to Washington, D.C. and Beijing.

In the shadow of the World Economic Forum in nearby Davos, where Liu spoke to global financial leaders on Tuesday, Yellen stressed the importance of cooperation between the two nations.

"Amid a complicated global economic outlook, there is a pressing need for the two largest economies in the world to closely communicate on global macroeconomic and financial conditions and exchange views on how we are responding to various challenges," Yellen said in a statement released after the meeting.

"While we have areas of disagreement, and we will convey them directly, we should not allow misunderstandings, particularly those stemming from a lack of communication, to unnecessarily worsen our bilateral economic and financial relationship."

While acknowledging policy differences, Liu said communication can play an important role in coming to mutual resolutions.

"We do face problems, but as President Xi said, we only have one planet earth and there are always more solutions than problems," Liu said. He added he anticipates a continuation of "serious communication and coordination on macroeconomic affairs, climate change and other issues of mutual interest."

Both leaders said they sought to build on progress made during U.S. President Joe Biden's meeting face-to-face with Chinese President Xi Jinping in November on the sidelines of the G20 Summit in Bali.

During that meeting, Biden said that Xi was "straightforward" as they had a "candid and clear" discussion that led him to assert there "need not be a new cold war" between China and the West.

During his Davos speech on Tuesday, Liu warned global leaders about falling into a "cold war mentality" in response to China.

"First, we need to uphold the right principles and maintain the effective international economic order," Liu said in the speech. "Under the new circumstances, the traditional way of thinking cannot provide the solution.

"That is why we have to abandon the cold war mentality, try to understand the nature of things from the perspective of material duality, endeavor to build a community with a shared future for mankind, and join hands to respond to global challenges."