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    U.S. Officials to Visit China for Economic Talks as Trade Tensions Rise

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    The recently established U.S.-China Financial Working Group is set to meet for discussions about financial stability and curbing the flow of fentanyl.A group of senior Biden administration officials is traveling to Shanghai this week for a round of high-level meetings intended to keep the economic relationship between the United States and China on stable footing amid mounting trade tensions between the two countries.The talks will take place on Thursday and Friday and are being convened through the U.S.-China Financial Working Group, which was created last year. Officials are expected to discuss ways to maintain economic and financial stability, capital markets and efforts to curb the flow of fentanyl into the United States.Although communication between the United States and China has improved over the past year, the economic relationship remains fraught because of disagreements over industrial policy and China’s dominance over green energy technology. The Biden administration imposed new tariffs in May on an array of Chinese imports, including electric vehicles, solar cells, semiconductors and advanced batteries. The United States is also restricting American investments in Chinese sectors that policymakers believe could threaten national security.The U.S. delegation, which is scheduled to depart on Monday, is being led by Brent Neiman, the Treasury Department’s assistant secretary for international finance. He will be joined by officials from the Federal Reserve and the Securities and Exchange Commission. They are expected to meet with the People’s Bank of China’s deputy governor, Xuan Changneng, and other senior Chinese officials.“We intend for this F.W.G. meeting to include conversations on financial stability, issues related to cross-border data, lending and payments, private-sector efforts to advance transition finance, and concrete steps we can take to improve communication in the event of financial stress,” Mr. Neiman said ahead of the trip, referring to the abbreviation for the financial working group.Treasury Secretary Janet L. Yellen pressed Chinese officials during her trip to China in April to stop flooding global markets with cheap clean-energy products.Pool photo by Tatan SyuflanaAmerican and Chinese financial regulators have been conducting financial shock exercises this year to coordinate their responses in the event of a crisis, like a cyberattack or climate disaster, that might affect the international banking or insurance systems.The Biden administration has been urging China to take action to prevent chemicals used to produce fentanyl from being exported to other countries and smuggled into the United States. There were signs of progress this month when China announced that it would put new restrictions on three of these chemicals, a move that the United States described as a “valuable step forward.”Other economic issues between the two countries continue to be contentious. Treasury Secretary Janet L. Yellen pressed Chinese officials during her trip to China in April to stop flooding global markets with cheap clean-energy products, warning that its excess industrial capacity would distort global supply chains.But after a meeting of Communist Party leaders last month, there was little indication that China would retreat from its investments in high-tech manufacturing or take major steps toward rebalancing its economy by bolstering domestic consumption.The talks this week are the fifth meeting of the financial working group and will be the second time the officials have convened in China. More

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    U.S. Vies With Allies and Industry to Tighten China Tech Controls

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    The Biden administration must navigate the interests of U.S. companies and allied governments as it tries to close off China’s access to advanced chipsThe Biden administration is fighting to overcome opposition from allied nations and the tech industry as it prepares to expand restrictions aimed at slowing China’s ability to make the most advanced semiconductors, which could be used to bolster Beijing’s military capacity.The administration has drafted new rules that would limit shipments to China of the machinery and software used to make chips from a number of countries if they are made with American parts or technology, as well as some types of semiconductors, according to people who have seen or were briefed on a draft version of the rules.The rules are aimed at blocking off some of the newer routes that Chinese chipmakers have found to acquire technology, despite international restrictions.The United States has been pushing allies like Japan and the Netherlands to toughen their restrictions on technology shipments to China, during visits to those countries as well as a Japanese state visit to Washington in April. Those nations are home to companies that produce chip-making machinery, like ASML Holding N.V. and Tokyo Electron Limited. But industry in the United States and other countries has argued the rules could hurt them, and it remains unclear when or if foreign governments will issue limitations.In the meantime, some of the rules that the United States plans to impose would have significant carve-outs, the people said. The rules blocking shipments of equipment to certain semiconductor factories in China would not apply to more than 30 allied countries, including the Netherlands, South Korea and Japan.That has sparked pushback from U.S. firms, who argue that the playing field will be further tilted against them if the U.S. government stops their sales but not those of their competitors.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Caterpillar Factory in Mexico Draws Complaint of Labor Abuses

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    The Biden administration declined to pursue a union complaint of labor abuses in Mexico, raising new concerns about offshoring.Over the past few years, as major manufacturers have announced plans to ramp up production in Mexico, labor unions have raised concerns that American jobs will be sent abroad.Now, the concerns have prompted the United Automobile Workers union, a prominent backer of President Biden, to criticize an administration decision not to pursue accusations of labor abuses by a Mexican subsidiary of Caterpillar, the agriculture equipment maker.In late June, the administration informed a group of unions that it would not pursue a complaint that the subsidiary had retaliated against striking union members by making it difficult for them to find alternative employment, a form of blacklisting.The government’s ability to police such violations, under a provision of the United States-Mexico-Canada Agreement, the successor to the North American Free Trade Agreement, is meant to reduce the incentive for American employers to move jobs to Mexico in search of weaker labor protections. The U.A.W. argues that, by declining to use its authority under the trade agreement in this case, the Biden administration may be encouraging companies to relocate work.Caterpillar workers in Mexico “face harassment and blacklisting for daring to stand up, with no help from the U.S.M.C.A.,” Shawn Fain, the president of the U.A.W., said in a statement. The U.A.W. was among several labor groups that brought the complaint.The Biden administration would not comment on the complaint, but pointed to two dozen other cases it had pursued under the trade agreement. Caterpillar did not respond to requests for comment.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Biden Announces Tariffs on Chinese Metals Routed Through Mexico

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    The measure aims to close a loophole that officials said allowed metals made partly in China to come into the United States duty free.The Biden administration took steps on Wednesday to prevent China from circumventing American tariffs on Chinese steel and aluminum by routing those imports through Mexico.The administration said it would impose tariffs on imports of Mexican metals that are partially made in China. American officials said the move would close a trade loophole that has allowed cheap, state-subsidized Chinese metals to circumvent existing U.S. tariffs.The United States will now impose a 25 percent tariff on Mexican steel that is melted or poured outside of North America before being turned into a finished product. Previously, that steel would have entered the country duty free.Mexican aluminum coming into the United States will face a tariff of 10 percent if it contains metal that has been smelted or cast in China, Belarus, Iran or Russia, said Lael Brainard, the director of the White House’s National Economic Council.Mexico, which recently increased its own tariffs on steel and aluminum from certain countries, will require importers to provide more information about where their steel products come from, the announcement said. The changes will take effect immediately.Officials in the Biden administration said the United States wanted to protect American factories that produce steel and aluminum, including those that have recently received new investments from government funds.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    New Plan to Target Russia’s Oil Revenue Brings Debate in White House

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    Treasury officials want to impose penalties on tankers that help Russian oil evade sanctions. White House aides worry that risks making gasoline more expensive.Officials in President Biden’s Treasury Department have proposed new actions aimed at crippling a fleet of aging oil tankers that are helping deliver Russian oil to buyers around the world in defiance of Western sanctions.Their effort is aimed at punishing Russia but it has stalled amid White House concerns over how it would affect energy prices ahead of the November election.In an attempt to drain Russia of money needed to continue fighting its war in Ukraine, the United States and its allies have imposed penalties and taken other novel steps to limit how much Moscow earns from selling oil abroad. But Russia has increasingly found ways around those limits, raising pressure on the Biden administration to tighten its enforcement efforts.Treasury officials want to do that, in part, by targeting a so-called shadow fleet of oil tankers that is allowing Russia to sell oil above a $60-per-barrel price cap that the United States and its allies imposed in 2022.That cap was intended to restrict Moscow’s ability to profit from its energy exports while allowing its oil to continue flowing on international markets to prevent a global price shock. But Russia has largely circumvented the cap, allowing it to reap huge profits to fund its war efforts.While Treasury officials want to knock Russian tankers out of commission, economic advisers inside the White House worry that would risk inflaming oil prices this summer and push up U.S. gasoline prices, which could hurt Mr. Biden’s re-election campaign. They have not signed off on the proposals, even as current and former Treasury officials present them with analyses suggesting the risks of a major effect on the oil market are low.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    G7 Finance Ministers Aim to Use Russia’s Frozen Assets to Help Ukraine

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    Western economic officials projected a united front, and braced for retaliation, as they prepped tougher sanctions and tariffs.Top finance officials from the world’s advanced economies moved toward an agreement on Saturday over how to use Russia’s frozen central bank assets to aid Ukraine and warned against China’s dumping of cheap exports into their markets, aiming to marshal their economic might to tackle twin crises.The embrace of more ambitious sanctions and protectionism came as finance ministers from the Group of 7 nations gathered for three days of meetings in Stresa, Italy. The proposals under consideration could deepen the divide between the alliance of wealthy Western economies and Russia, China and their allies, worsening a global fragmentation that has worried economists.Efforts by the Group of 7 to influence the two powerful adversaries have had limited success in recent years, but rich countries are making a renewed push to test the limits of their combined economic power.In a joint statement, or communiqué, released on Saturday, policymakers said they would stay united on both fronts as geopolitical crises and trade tensions have emerged as the biggest threats to the global economy.“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine,” the statement said.Regarding China, the finance ministers expressed concern about its “comprehensive use of nonmarket policies and practices that undermines our workers, industries, and economic resilience.” They agreed to monitor the negative effects of China’s overcapacity and “consider taking steps to ensure a level playing field.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    G7 Finance Ministers Close Ranks as Tensions with Russia and China Fester

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    Western economic officials projected a united front, and braced for retaliation, as they prepped tougher sanctions and tariffs.Top finance officials from the world’s advanced economies moved closer to an agreement on Saturday over how to use Russia’s frozen central bank assets to aid Ukraine and pledged to unite against China’s dumping of cheap exports into their markets, aiming to marshal their economic might to tackle twin crises weighing on the global economy.The embrace of more ambitious sanctions and protectionism came as finance ministers from the Group of 7 nations gathered for three days of meetings in Stresa, Italy. The proposals under consideration could deepen the divide between the alliance of wealthy Western economies and Russia, China and their allies, worsening a global fragmentation that has worried economists.Efforts by the Group of 7 to influence the two powerful adversaries have had limited success in recent years, but rich countries are making a renewed push to test the limits of their combined economic power.In a joint statement, or communiqué, that was set to be released on Saturday, policymakers said they would stay united on both fronts as geopolitical crises and trade tensions have emerged as the biggest threats to the global economy.“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine,” the statement, which was reviewed by The New York Times, said.Regarding China, the finance ministers expressed concern about its “comprehensive use of nonmarket policies and practices that undermines our workers, industries, and economic resilience.” They agreed to monitor the negative effects of China’s overcapacity and “consider taking steps to ensure a level playing field.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.S. and Europe Move Closer to Using Russian Assets to Help Ukraine

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    Finance ministers from the G7 nations are hoping to finalize a plan ahead of the group’s leaders meeting next month.The United States and Europe are coalescing around a plan to use interest earned on frozen Russian central bank assets to provide Ukraine with a loan to be used for military and economic assistance, potentially providing the country with a multibillion-dollar lifeline as Russia’s war effort intensifies.Treasury Secretary Janet L. Yellen said in an interview on Sunday that several options for using $300 billion in immobilized Russian assets remained on the table. But she said the most promising idea was for Group of 7 nations to issue a loan to Ukraine that would be backed by profits and interest income that is being earned on Russian assets held in Europe.Finance ministers from the Group of 7 will be meeting in Italy later this week in hopes of finalizing a plan that they can deliver to heads of state ahead of the group’s leaders meeting next month. The urgency to find a way to deliver more financial support to Ukraine has been mounting as the country’s efforts to fend off Russia have shown signs of faltering.“I think we see considerable interest among all of our partners in a loan structure that would bring forward the stream of windfall profits,” Ms. Yellen said during her flight to Germany, where she is holding meetings ahead of the Group of 7 summit. “It would generate a significant up-front amount that would help meet needs we anticipate Ukraine is going to have both militarily and through reconstruction.”For months, Western allies have been debating how far to go in using the Russian central bank assets. The United States believes that it would be legal under international law to confiscate the money and give it to Ukraine, but several European countries, including France and Germany, have been wary about the lawfulness of such a move and the precedent that it would set.Although the United States recently passed legislation that would give the Biden administration the authority to seize and confiscate Russian assets, the desire to act in unison with Europe has largely sidelined that idea.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More