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China said it welcomes Janet Yellen’s visit this year after the US Treasury Secretary met Vice Premier Liu He in Zurich, in the first high-level economic meeting between the two powers since US President Joe Biden took office.
Both sides described the meeting, which comes as relations between the United States and China remain fraught with problems from Taiwan to trade and technology, as “frank”. In separate statements, the two sides sought to ease concerns about a further deterioration in relations between the world’s two largest economies.
China’s state-run news agency, Xinhua, said the two officials agreed in a three-hour meeting that their economic and trade teams would “continue to maintain contacts at all levels” and that Beijing would welcome a visit from Yilin “at an appropriate time this year”.
The Treasury Department said the two sides agreed that “it is important for the work of the global economy to further strengthen communication on macroeconomic and financial issues.” She added that Yellen “looks forward to traveling to China” and welcoming her Chinese counterparts to the United States.
The Zurich talks come two months after Biden and President Xi Jinping held their first in-person meeting as leaders of the G20 in Bali. The two tried to stem a deterioration in relations that reached a new low when China conducted massive military exercises around Taiwan in August.
Five more stories in the news
1. The Bank of Japan maintains yield monitoring procedures The Bank of Japan defied market pressures and left its yield curve control measures unchanged, sending the yen sharply lower and stocks rallying as it stuck to the mainstay of its ultra-loose monetary policy. The decision comes after weeks of turmoil in the Japanese government bond market, during which yields rose.
2. Shine discusses fundraising that will lower ratings Shein is in talks to raise as much as $3 billion in a move that would see the Chinese fast-fashion group accept a greatly reduced valuation of $64 billion, down more than a third from its peak in the wake of a recession that prompted investors to re-assess companies’ valuations. Foamy emerging.
3. Thiel Fund ended the Bitcoin bet before the market crashed The Founders Fund, the venture capital firm co-founded by billionaire Peter Thiel, closed all of its bets for nearly eight years on cryptocurrency shortly before the market began crashing last year, generating nearly $1.8 billion in returns.
4. China launches state-owned delivery app The app, called Strong Nation Transport, will initially target members of the Communist Party and employees of government-owned companies, in defiance of the country’s ruling market leader Didi. Yesterday, state media reported that the app will support the Ministry of Transport and other government agencies.
5. Behind Musk’s “Secured Funding” Tweet Elon Musk made a “quick decision” by tweeting that he “got funding secured” to take Tesla private in 2018 after he saw a story in the Financial Times, the billionaire’s attorney told a jury in San Francisco. Musk and Tesla’s lawyer said Musk sent the message while in a car on the way to the airport after he read a report in the Financial Times detailing how the Saudi Public Investment Fund quietly acquired a $2 billion stake in the electric vehicle group.
An activist fund targeting KT&G in South Korea Flashlight Capital Partners will present proposals to shareholders today, pressure tobacco maker KT&G to triple its dividend, appoint two well-known Korean business leaders as outside directors and split its ginseng unit into a separate listing.
The Australian Open tennis tournament continues The second round of singles matches will be held in Melbourne, with Andy Murray taking on fellow unseeded Australian Tanasi Kokkinakis and Tunisia’s Anas Jabeur taking on Marketa Vondrousova.
Greta Thunberg is said to be meeting with the executive director of the International Energy Agency Today, the Swedish activist is scheduled to meet Fatih Birol, head of the International Energy Agency, in Davos on the sidelines of the World Economic Forum (Reuters).
ECB minutes The Central Bank will publish its December meeting minutes today and central bankers will discuss several regional and global economies in Davos.
The World Economic Forum continues. Watch the daily Davos show, hosted by the Financial Times’ Andrew Hill, from 12 noon BST on January 17-19. Register here for free.
What else do we read?
Can Apple separate from China? Apple faces political, strategic and investor pressure to reduce its manufacturing dependence on China. But if a relationship is unsustainable, it is also almost unbreakable. As the tech giant finds itself increasingly beholden to America’s greatest geopolitical rival, the question is whether or not diversification is possible.
Bollywood movie caters to India’s culture wars Pathan, the big-budget Bollywood movie that comes out next week, marks the grand comeback of India’s biggest actor: Shahrukh Khan. But it will also be a test for Khan and Bollywood after a series of flops at the box office and Khan becoming a target of harassment from hard-line Hindu groups.
Davos: There is still life in global capitalism The World Economic Forum in Davos was the meeting place and promoter of global capitalism. While some argue that the cause is dead, rumors of the demise of international business and commerce have been exaggerated, writes Martin Wolf.
Disney activist investor focused on Fox deal Nelson Peltz, the activist investor trying to force his way onto Disney’s board of directors, has focused on a $71 billion deal that saw the entertainment company buy Fox Films and Television. Peltz blames the deal on what he calls “Disney’s balance sheet from hell,” saddling it with additional debt and preventing the company from returning cash to investors.
Chinese snooker players accused of match-fixing The game’s governing body has indicted 10 Chinese professional snooker players as part of an investigation into match-fixing, in an embarrassing episode that threatens the sport’s standing in its most important growing market.
Take a break from the news
Beef is serious business in South Korea: local butchers typically specify 120 different cuts (as opposed to the western 20 or 30) that run from tenderloin to hide parts of the tail. Hanwoo beef is considered the most luxurious, but while it is popular in South Korea, it is less popular abroad. Will Hanwoo be the next wagyu steak?
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