One reason China is willing to engage again: Its troubled economy
China's economy was on track to recover relatively quickly after being closed off to the world during the pandemic. Consumers were spending again. Exports picked up.
Even China's beleaguered housing market gave hints it was stabilizing. That is no longer the case. Official data released Monday revealed that the annual pace of growth in China's economy tumbled to just a little over 3% in the spring, well below the government's target.
Now the faltering economy appears to have helped prompt a shift in the willingness of senior Chinese officials to engage in diplomatic talks with geopolitical rivals abroad, and to show more openness on economic policy at home. The change in tone is particularly visible in China's relations with the United States. Despite several years of fraying ties and concerted efforts to become less dependent on one another, the two countries remain closely linked economically, together accounting for two-fifths of global output.
In the past month, China has welcomed three senior U.S. officials to Beijing, including John Kerry, President Joe Biden's climate envoy, who arrived Sunday, and Treasury Secretary Janet Yellen, who held 10 hours of meetings with top Chinese officials. Up to three Chinese ministers are expected to travel to Washington in the coming weeks, as the two countries have begun discussing everything from climate change to military issues.
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