China and the United States have agreed to establish a contact group to address potential future financial stress events. This move aims to enhance cooperation and coordination between the two countries in managing financial risks. The contact group will facilitate communication and information sharing between the two nations’ financial authorities, enabling them to respond more effectively to any future financial crises.

The initiative is seen as a significant step towards improving bilateral relations and reducing the risk of financial contagion. It follows a series of high-level meetings between Chinese and U.S. officials, including a recent meeting between Chinese Vice Premier Liu He and U.S. Treasury Secretary Janet Yellen. The contact group will focus on sharing information, coordinating policies, and developing joint responses to financial stress events.

This development is particularly noteworthy given the ongoing tensions between the two nations. The establishment of the contact group underscores a willingness to work together on critical issues, even as other areas of disagreement remain. The move is expected to strengthen the resilience of the global financial system and enhance the ability of both countries to manage financial risks effectively.