Dear Focus Reader,

As President Joe Biden's administration prepares to close its term, the U.S. is making concerted efforts to stabilize its economic relationship with China before the Trump administration returns to office in January 2025.

This week, a delegation of senior Treasury Department officials will head to Nanjing, China, for a concluding session of the U.S.-China financial working group. An additional group will meet with their Chinese counterparts during a Group of 20 gathering in South Africa for discussions as well.

Treasury Secretary Janet Yellen emphasized the importance of these working groups, noting that they have been instrumental in addressing U.S. concerns such as China's macroeconomic imbalances, export restrictions on critical minerals, and excess industrial capacity in certain sectors. She also urged the incoming administration to continue such dialogue, emphasizing that these talks help clarify economic policies, prevent misunderstandings, and reduce the risk of escalation—especially given concerns about a potential trade war when the Trump administration returns to power.

In addition to the ongoing economic discussions and President Biden's efforts to strengthen China-U.S. relations before leaving office, Beijing and Washington have also agreed to a five-year renewal of the U.S.-China Science and Technology Agreement (STA), a key pillar of bilateral scientific cooperation since 1979. However, in response to national security concerns, the renewed agreement includes tighter restrictions, focusing exclusively on basic research and excluding critical and emerging technologies.

Despite opposition from some Republican lawmakers, who argue that such decisions should be left to the incoming administration, the Biden administration has stressed the importance of maintaining channels for scientific collaboration for both bilateral and global progress and development.

Learn more about the China-U.S. relationship by catching up on our latest Focus content, including topics on people-to-people dialogues, Trump's trade wars, and expectations for the next four years.