Liu He, US Treasury's Yellen Meet In Zurich

Vice Premier Liu He and US Treasury Secretary Janet Yellen met in Zurich on Wednesday, and pledged to manage their differences and find ways to work together on global challenges.

Liu said both countries need "serious communication" and coordination on issues including climate change and the economy and that he was ready for an in-depth exchange.

"We do believe that we have to always bear in mind the bigger picture, try to manage our differences appropriately and seek common ground," Liu said, speaking through an interpreter. "In this way, hopefully we can work together to maintain the overall stability of Chinese-US relations."

Yellen told Liu she planned to address issues of concern in their first in-person meeting, but said both countries needed to manage "our differences and prevent competition from becoming anything ever near conflict".

"While we have areas of disagreement, and we will convey them directly, we should not allow misunderstandings, particularly those stemming from a lack of communication, to unnecessarily worsen our bilateral economic and financial relationship," Yellen said at the start of the meeting.

The former Federal Reserve chair said she hoped to delve deeply into topics of mutual concern, including macroeconomic cooperation and climate finance. A mainland official said they would also touch on the possibility of a world recession.

Treasury officials said the discussion would centre on the global economy, sovereign debt issues and climate change, as the world's biggest economies work to repair frayed relations.

President Xi Jinping and his US counterpart, Joe Biden, pledged to increase communication when they met in Indonesia in November.

On Tuesday, Liu urged global leaders gathered in Davos for the World Economic Forum to abandon what he called a "Cold War mentality" and expand international cooperation on issues such as climate change. (Reuters)

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