On April 8, 2024, US Treasury Secretary Janet Yellen announced that the US and China will deepen cooperation on financial stability issues and conduct more simulations of financial shocks. The exercises were developed by a US-China financial working group formed last year to rebuild economic ties. Yellen emphasized the importance of establishing communication between US and Chinese regulators to identify potential cross-border contagion and other risks. The goal of the exercises is to enhance operational resilience coordination and assess the impacts of climate change risks on the insurance system. Yellen also warned Chinese banks against facilitating transactions that support Russia's war effort in Ukraine, stating that there would be significant consequences. The exercises are scheduled to take place in April or May and are seen as an example of improved economic dialogue between the US and China [6219667b].
During her visit to China, Yellen held talks with Chinese Vice Premier He Lifeng and other influential figures to discuss financial stability and economic cooperation. The discussions focused on deepening cooperation between the US and China on financial stability issues and conducting simulations of financial shocks. The exercises aim to establish communication between US and Chinese regulators, identify potential cross-border contagion and other risks, and enhance operational resilience coordination. Yellen also emphasized the importance of addressing climate change risks and their impacts on the insurance system. She warned Chinese banks against facilitating transactions that support Russia's war effort in Ukraine, emphasizing that there would be significant consequences. The exercises are scheduled to take place in April or May and are part of the ongoing efforts to rebuild economic ties between the US and China [6219667b].