In the early days of June, the world's two largest economies exchanged careful words across a video screen — the first such conversation between Janet Yellen and China's Liu He since the Biden administration began. They spoke of cooperation and mutual concern, yet offered nothing to suggest the long tariff standoff between their nations was any closer to resolution. Like two great rivers running parallel, the dialogue flowed without yet finding a common course.
China, US hold first high-level trade talks under Biden amid tariff stalemate
Neither side offered any signal about when actual negotiations might resume.
Mark
So Yellen and Liu He finally talked. Does that mean things are thawing?
Mimi
Not necessarily. They met, they discussed things, but neither side said anything concrete about what comes next or when they might actually negotiate.
Luke
Right—and that's the key detail. A meeting happened, but there's no indication of momentum. We don't know what "issues of mutual concern" means in practice.
Mark
What's the actual state of the tariff war right now? Is it frozen, or is it still active?
Mimi
It's frozen in a way. Trump raised tariffs, China retaliated, and then they signed Phase 1 in 2019 to stop escalating. But they haven't resolved the underlying conflict.
Luke
And Phase 1 was supposed to be temporary—a stepping stone to Phase 2. That never happened. So we're in this limbo where the tariffs are still there, but both sides agreed not to make things worse.
Mark
What about the soybean purchases China promised to make?
Mimi
China fell behind on those commitments. The pandemic disrupted trade, and they didn't buy as much as they said they would.
Luke
Though we should note—the source doesn't say by how much, or whether China blamed the pandemic or whether the U.S. disputes that explanation. We know they fell short, but the details of why and by how much aren't in this reporting.
Mark
So what does Biden actually want to do here?
Mimi
That's the open question. He hasn't said yet. He inherited this conflict from Trump, and he's still reviewing it.
Luke
And that's been five months. The fact that Yellen and Liu are talking now suggests Biden's team is at least engaging, but the lack of any announced timeline or direction suggests they're still figuring out their strategy.
Der Puls
- A tariff war years in the making still has no end in sight — the first high-level economic call between the U.S. and China produced no timeline, no breakthrough, and no concrete next steps.
- Both sides retreated into diplomatic vagueness: Washington called the talks 'frank,' Beijing cited 'mutual concerns,' and neither elaborated on what was actually said.
- The Biden administration inherited a calcified standoff — Trump's tariffs, China's retaliatory measures, and a Phase 1 deal that the pandemic quietly unraveled — and has yet to signal how it intends to move forward.
- Face-to-face negotiations have been frozen since early 2020, replaced by monthly check-in calls between lower-level officials monitoring a deal that neither side is fully honoring.
- Trade Representative Katherine Tai's pre-call with Liu He the week prior offered little more — her office described an 'ongoing review,' signaling deliberation rather than direction.
In the early days of June, the world's two largest economies exchanged careful words across a video screen — the first such conversation between Janet Yellen and China's Liu He since the Biden administration began. They spoke of cooperation and mutual concern, yet offered nothing to suggest the long tariff standoff between their nations was any closer to resolution. Like two great rivers running parallel, the dialogue flowed without yet finding a common course.
On a Wednesday in early June, Janet Yellen and Liu He met by video — the first exchange between the U.S. Treasury Secretary and China's Vice Premier since President Biden took office. The conversation was long overdue, but when it ended, neither side offered any signal that actual trade negotiations were imminent.
The two officials discussed their economies, potential areas of cooperation, and what Beijing vaguely termed 'other issues of mutual concern.' Washington was equally opaque, with Treasury describing the talks as 'frank' without elaborating further. No timeline emerged. No details were shared.
The silence carried weight. Trump had left office with a tariff standoff firmly in place — duties on Chinese imports, retaliatory Chinese tariffs on American goods, and a halt on soybean purchases that had wounded American farmers. A 'Phase 1' agreement signed in early 2019 had promised a first step toward peace, with China committing to increased purchases of U.S. agricultural exports. But the pandemic disrupted global supply chains, Beijing fell short on its commitments, and the deal quietly stalled.
The week before the Yellen-Liu call, Trade Representative Katherine Tai had spoken with Liu by phone, describing her 'ongoing review' of the trade relationship — a phrase that signaled thinking rather than action. In-person negotiations had not taken place since early 2020. What remained were monthly calls between lower-level officials, checking whether either side was still honoring a deal that time and circumstance had already begun to erode.
Two years into a fragile ceasefire, the world's two largest economies were still talking — but not yet moving.
On a Wednesday in early June, Janet Yellen and Liu He connected by video screen—the first time the U.S. Treasury Secretary and China's Vice Premier had spoken since President Biden took office five months earlier. They were supposed to be talking about ending a trade war that had dragged on for years, but when their meeting ended, neither side offered any signal about when actual negotiations might resume.
The two officials discussed the state of their respective economies, areas where the countries might cooperate, and what Beijing's Commerce Ministry called "other issues of mutual concern." The American side was similarly vague, with Treasury saying Yellen had engaged in "frank" discussion of concerns without elaborating on what those concerns actually were. No details emerged. No timeline was announced.
The silence was telling. When Donald Trump left office in January, he left behind a tariff standoff that had calcified over four years. Trump had imposed duties on Chinese imports, citing concerns about Beijing's industrial practices and the trade imbalance between the two countries. China responded by halting purchases of American soybeans and raising its own tariffs on U.S. goods. The conflict had metastasized into something neither side seemed eager to resolve quickly, and Biden had yet to signal how—or whether—he intended to unwind it.
The week before the Yellen-Liu call, Liu had spoken by phone with Katherine Tai, the U.S. Trade Representative leading America's side of the negotiations. Tai's office said she had discussed her "ongoing review" of the trade relationship, which amounted to saying she was still thinking about what to do. The two countries hadn't sent negotiators to meet in person since early 2020, just before the pandemic shut down travel and face-to-face diplomacy. What remained were monthly phone calls between lower-level officials, checking on whether either side was honoring the "Phase 1" agreement signed in early 2019.
That Phase 1 deal had been supposed to be a first step toward peace. Both countries agreed to stop escalating tariffs and to roll some back. China committed to buying more American agricultural exports and other goods. But the pandemic had scrambled global supply chains, and Beijing fell short on its purchasing promises. Now, more than two years later, the two largest economies in the world were still stuck—talking, but not negotiating; connected by video, but not moving forward.
Bemerkenswerte Zitate
China's Commerce Ministry said the officials discussed the economic situation, bilateral cooperation, and other issues of mutual concern— China's Commerce Ministry
U.S. Treasury said Yellen discussed frankly tackling issues of concern— U.S. Treasury Department
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