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US-China relations
ChinaDiplomacy

China deploys Xi’s trusted ally after top diplomat fails to make US trade breakthrough

Liu is in Washington at the peak political season in Beijing, a sign of just how important the talks are, analysts say

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Top economic adviser Liu He has been sent to the US during peak political season in Beijing. Photo: Reuters
Catherine Wong

China sent the president’s most trusted economic adviser to Washington for trade talks after a trip by its top diplomat failed to contain tensions between the world’s two biggest economies, diplomatic observers said.

Liu He, director of the Office of the Central Leading Group for Financial and Economic Affairs, is in the United States until Saturday, seeking common ground with Washington on trade and macroeconomic policy as the prospect of a trade war rises.

State Councillor Yang Jiechi – who ranks above the foreign minister – was in Washington on a similar mission about three weeks ago.

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Analysts said the decision to send Yang and Liu – both members of the Communist Party’s Politburo – to the US within a month signalled that China was concerned that the tensions might escalate into a trade war.

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Shi Yinhong, director of Renmin University’s Centre for American Studies and an adviser to the State Council, China’s cabinet, said it was likely that the White House had rejected offers made during Yang’s trip.

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