The United States and China Discuss 'severe' Economic Challenges and Supply Chains

On Tuesday, top officials from the United States and China held a "frank" video call to discuss global economic challenges, particularly supply chain issues.

The exchange between Chinese Vice Premier Liu He and US Treasury Secretary Janet Yellen comes as President Joe Biden considers lowering tariffs on Chinese imports in order to combat rising inflation.

The world's two largest economies are also dealing with clogged Covid supply chains and rising global energy prices.

"The two sides agree that as the world economy is facing severe challenges, it is of great significance to strengthen macro-policy communication and coordination between China and the United States, jointly maintaining the stability of the global industrial and supply chains is in the interests of both countries and the whole world," China's official Xinhua news agency reported.

According to the Xinhua report, the video call was requested by the US and the conversation was "constructive." The US Treasury Department said in a readout that Yellen and Liu "discussed macroeconomic and financial developments in the United States and China, the global economic outlook amid rising commodity prices, and food security challenges."